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Severson Products (SP) has three service departments - Cafeteria, Custodial Services and Maintenance. SP also...

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Accounting

Severson Products (SP) has three service departments - Cafeteria, Custodial Services and Maintenance. SP also has two operating departments Milling and Finishing. SP allocates the cost of Cafeteria on the basis of number of employees, Custodial Services on the basis space occupied in square metres and Maintenance on the basis of machine hours. Milling applies overhead based on machine hours, and Finishing based on the number of direct labour hours.
\table[[3,Budgeted operating data for the upcoming year follows:,,],[4,Service Departments,,],[6,Budgeted overhead before allocation,Cafeteria$310.000,\table[[Services],[$66,000
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