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Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000, and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments have budgeted costs of $48,000 and $250,000, respectively. The production departments overhead rates cannot be determined until the service departments costs are allocated. The following schedule reflects the use of the Maintenance Departments and Computing Departments output by the various departments.

Required: 1-a. Use the direct method to allocate service department costs. 1-b. Calculate the overhead rates per direct-labor hour for the Etching Department and the Finishing Department.

The answer to part A isn't 424083 and 393917 and the answer to part B isn't 10.60 and 2.46.

Service Department Maintenance (maintenance hours) Computing (minutes) Maintenance 0 240,000 Using Department Computing 1,000 0 Etching 1,000 840,000 Finishing 8,000 120,000 Req 1A Req 1B Use the direct method to allocate service department costs. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Costs allocated to Etching Costs allocated to Finishing Total costs to be allocated $ 385,889 432,111 X $ 818,000 Req 1A Req 1B Calculate the overhead rates per direct-labor hour for the Etching Department and the Finishing Department. (Do not round intermediate calculations. Round your final answers to 3 decimal places.) Overhead rate per hour $ Etching 9.650 $ Finishing 2.700 X

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