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Working Data:
| Service Department | Production Department | |||
| Human Resource | Maintenance | Machining | Assembly | |
| Labor Hours | 5000 | 20000 | 25000 | |
| Costs | 135000 | 100000 | 275000 | 225000 |
| 1. Distribution of Service Department cost using direct distribution method | ||||
| Human Resource | Maintenance | Machining | Assembly | |
| Costs before allocation | 135000 | 100000 | 275000 | 225000 |
| Allocation of Costs: | ||||
| Human Resource | -135000 | 60000 | 75000 | |
| Maintenance | -100000 | 44444 | 55556 | |
| Costs after allocation | 0 | 0 | 379444 | 355556 |
| 2.. Distribution of Service Department cost using sequential distribution method | ||||
| Human Resource | Maintenance | Machining | Assembly | |
| Costs before allocation | 135000 | 100000 | 275000 | 225000 |
| Human Resource | -135000 | 13500 | 54000 | 67500 |
| Costs after allocation 1 | 0 | 113500 | 329000 | 292500 |
| Maintenance | -113500 | 50444 | 63056 | |
| Costs after allocation 2 | 0 | 0 | 379444 | 355556 |
| 3. Predetermined OH Rate using Direct distribution method for machining department | |
| Costs after allocation | 379444 |
| Labor Hours | 20000 |
| Rate | 18.97 |
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