Rapport Manufacturing Company Has Two Service Departments, Maintenance Department and Personnel

Essay

Rapport Manufacturing Company has two service departments, Maintenance Department and Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of $60,000 are allocated on the basis of standard service used. The Personnel Department costs of $9,000 are allocated on the basis of number of employees. The direct costs of Departments X and Y are $72,000 and $120,000, respectively. Data on standard service-hours and number of employees are as follows:
Calculate the total overhead costs associated with Department Y after allocating the Maintenance and Personnel Departments using the direct method.