Transcribed Image Text: Salvador Apparel Company in Barcelona, Spain, has three production departments and two 1 service departments. The overhead-per-month analysis sheet provides the following totals of the overheads analyzed

Transcribed Image Text: Salvador Apparel Company in Barcelona, Spain, has three production departments and two 1
service departments. The overhead-per-month analysis sheet provides the following totals of
the overheads analyzed to production and service departments:
Departments
Men’s wear production department
Women’s wear production department
Children’s wear production department
Marketing service department
Delivery service department
Overheadse
€ 48,000-
42,000-
30,000-
14,040
~
18,000
€152,040-
The expenses of the service departments are apportioned as follows:
Production departments
Men’s
Service departments
Marketing Delivery
Women’s Children’s
20%
40%
30%
10%e
Marketing
Delivery
40%
20%
20%
20%
Instruction< Use following methods to allocate service departments' costs: 1. Direct allocation (20%)- 2. Step-down allocation (30%)- 3. Reciprocal allocation (50%)-

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