Please do not give image format Problem 7-38 (Algo) Departmental Cost Allocation [LO 7-3]Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month ofJune:Overhead costs incurredService provided to departmentsMaintenanceUtilitiesProducing-AProducing-BTotals123.The direct methodThe step methodThe reciprocal method iProducingDepartmentA$$Service DepartmentsHaintenance$ 324,000Required:What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) thedirect method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Do not round intermediatecalculations. Round final answers to the nearest dollar.)357.474350 274 x10%2070100%Answer is not complete.Utilities$ 678,000SProducingDepartmentB644,5265%4055100%$$Total Service.DepartmentCost1,002,000350,2740

Answer:- Cost allocation meaning:- Cost allocation is basically the process of locating, gathering…

Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Overhead costs incurred Service provided to departments Maintenance Utilities. Producing A Producing-B Totals 1. 2 3. The direct method The step method The reciprocal method i Service Departments Producing Department A $ $ Haintenance $324,000 10% 20 70 100% Required: What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Do not round intermediate calculations. Round final answers to the nearest dollar.) Utilities 357.474 S 350 274 Answer is not complete. $ 678,000 Producing Department B 5% 40 55 100% 644,526 S Total Service Department Cost 1,002,000 350,274 0