leang 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...

If the company uses the direct method of service department cost distribution, how much will the Machinery Department apply as factory overhead if it uses 13,500 direct labor hours?

Extracted text: leang 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: Maintenance Number of Direct Requisitions Labor Hours Departments Services Maintenance 400 Storeroom 14% Machinery 32% 3,500 20,000 Assembly 26% 6,000 36,000 Packaging 28% 4,100 18,000 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.