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Part 4 The Beautiful Dress Manufacturers, Inc. is divided into service departments and producing departments. The Warehousing Department, which carries out receiving, storing, and shipping functions, and the Maintenance Department are service departments. The Cutting, Sewing, and Finishing Departments are producing departments. The Maintenance Department serves the other departments in proportion to the area occupied by each department. Department Warehousing Cutting Sewing Finishing Square Feet Occupied 5,000 10,000 15,000 20,000 The Costs of the Warehousing Department are allocated to the producing departments on the basis of the number of materials requisitions processed. Department Number of Materials Requisitions Cutting 2,000 Sewing 5,000 Finishing 3,000 1. Prepare a worksheet for prorating estimated service department costs for the year 2006. The budgeted departmental overhead is as follows: Department Maintenance Warehousing Cutting Sewing Finishing Estimate Direct Departmental Overhead Costs $20,000 $17,000 $18,000 $16,000 $3,000 2. Summarize your computations for the bases and the prorations on three-column analysis paper. (See attached form Prorating Maintenance Department Costs Department Sq. Feet Percent Amount Prorating Warehousing Department Costs Department Materials Requisitions Percent Amount Worksheet for Prorating Estimated Service Department Costs ITEM BASIS OF PRORATION MAINTENANCE WAREHOUSING CUTTING SEWING 1 33

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