Answer:
Answer is given below.
If you face difficulty in understating the answer, see attached file.
Explanation:
        
  Molding	Assembly    
        
Employee	A	19	75    
Hours	B	2180	2180    
Toal Labor Hours	A*B	41420	163500    
        
        
        
  Engineering	Gen Factory	Molding	Assembly	Total  
Budgeted Overheads  $       206,000	$       395,000	$       198,000	$         73,000	$872,000  
        
Engineering Hours  	2100	2400	7600	$   12,100  
Square Feet  95850  447300	95850	$639,000  
        
Weights for Direct Method        
Engineering Hours    24.00%	76.00%  
Square Feet    82.35%	17.65%  
        
Weightes for reciperocal        
Engineering Hours%  	17.36%	19.83%	62.81%  
Square Feet%  15.00%  70.00%	15.00%  
        
1. Direct Method Allocation:        
        
  Engineering	Gen Factory	Molding	Assembly	Total  
Budgeted Overheads  $       206,000	$       395,000	$       198,000	$         73,000	$872,000  
Engineering  $     -206,000  $         49,440	$       156,560	$            -    
Gen Factory  	$     -395,000	$       325,294	$         69,706	$            -    
        
Total Overhead	a  	$       572,734	$       299,266  
Direct Labor Hours	b  	41420	163500  
Overhead Per DLH	a/b  	$            13.83	$              1.83  
        
1. Reciperocal Method Allocation:        
        
        
Engineering	206000+0.15Gen Factory      
Gen Factory	395000+0.1736Engineering      
        
Engineering	206000+0.15(395000+0.1736Engineering)      
        
Engineering	206000+59250+0.02604Engineering      
        
0.97396 Engineering	265250      
Engineering	$                                    272,342      
        
Gen Factory	395000+0.1736Engineering      
Gen Factory	395000+(0.1736*272342)      
Gen Factory	$                                    442,264	R/Off Gap      
        
  Engineering	Gen Factory	Molding	Assembly	Total  
Budgeted Overheads  $       206,000	$       395,000	$       198,000	$         73,000	$872,000  
Engineering  $     -272,342	$         47,266	$         54,018	$       171,058	$            -    
Gen Factory  $         66,340	$     -442,264	$       309,585	$         66,340	$            -    
        
Total Overhead	a  	$       561,603	$       310,397  
Direct Labor Hours	b  	41420	163500  
Overhead Per DLH	a/b  	$            13.56	$              1.90  
        
Part -3        
        
The major advantage of reciprocal method is that it fully takes into account the interdepartmental services        
and is therefore considered a more accurate method than direct and step method for departmental cost allocation.