Please show your computations through excel.b. Compute the total service allocated to finishing department using DIRECT method. MY Corp. has three service departments and three producing departments. The following information isavailable for the year:DepartmentCostPersonnel Security Maintenance CuttingSewingFinishingPersonnel1,000,00010%10%30%30%10%SecurityMaintenance 100,000400,00010%10%30%20%30%10%10%40S20%20%CuttingSewing800,0001,200,000FinishingDirect660,000P1,850,000 P50,000P780,000materialDirect laborP700,000P2,550,000 P1,740,000Actual FOHP300,000P500,000P700,000a. Compute the factory overhead rate, using RECIPROCAL method, of cutting department assuming theproducing department uses direct labor hours with 40,000 for cutting, 60,000 for sewing, and 20,000 forfinishing.b. Compute the total service allocated to finishing department using direct method.c. Compute the total service cost allocated to cutting department using RECIPROCAL method.

Answered: Please show your computations through…

Please show your computations through excel. b. Compute the total service allocated to finishing department using DIRECT method.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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