Assume that the company uses the reciprocal method in distributing service department costs and that the Packaging department applies factory overhead based on requisitions. How much is the...

Extracted text: Assume that the company uses the reciprocal method in distributing service department costs and that the Packaging department applies factory overhead based on requisitions. How much is the over/(under) applied factory overhead if there are 4,250 requisitions and actual factory overhead incurred by the department was P1,173,398? Indicate overapplied as a positive number, ex. 123456, and underapplied as a number in a parenthesis, ex. (123456). Deang Corporation has two service departments and three producing departments. The following were gathered from their operations: Service Departments P500,000 540,000 Maintenance Storeroom Producing Departments_ 1,200,000 1,784,000| 872,000 Machinery Assembly Packaging A factory survey revealed the following: Departments Maintenance Number of Direct Requisitions Labor Hours Services Maintenance 400 Storeroom 14% 20,000 36,000| 18,000 Machinery 32% 3,500 26% 6,000 4,100| Assembly Packaging 28% The costs of the maintenance department are allocated on the basis of percent of services rendered while the costs of the Storeroom department are allocated based on number of requisitions.