Madrid Has Two Service Departments (General Factory and Human Resources)and

Madrid has two service departments (General Factory and Human Resources)and two production departments (Machining and Assembly).The company uses the direct method of service-department cost allocation,allocating General Factory cost on the basis of square feet and Human Resources cost on the basis of employees.Budgeted allocation-base and operating data for the four departments follow.
A.Allocate the company's service-department costs to the producing departments.
B.Compute the overhead application rates for Machining and Assembly.

Application rates:
Machining: $5,200,000 / 80,000 machine hours = $65 per MH
Assembly: $3,300,000 / 150,000 labor hours = $22 per LH