Stubing Company has two producing departments and two support centers. The following budgeted data pertain to these four departments: Support Departments Producing Departments Maintenance Personnel Assembly Painting Overhead $200,000 $60,000 $43,000 $74,000 Square footage — 2,700 5,400 5,400 Number of employees 30 — 72 198 Direct labor hours — — 25,000 40,000 Required： Allocate the overhead cost of the support departments to the production department using the reciprocal method. 2. Using direct labour hours, compute departmental overhead rates.
Stubing Company has two producing departments and two support centers. The following budgeted data pertain to these four departments: Support Departments Producing Departments Maintenance Personnel Assembly Painting Overhead $200,000 $60,000 $43,000 $74,000 Square footage — 2,700 5,400 5,400 Number of employees 30 — 72 198 Direct labor hours — — 25,000 40,000 Required： Allocate the overhead cost of the support departments to the production department using the reciprocal method. 2. Using direct labour hours, compute departmental overhead rates.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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Stubing Company has two producing departments and two support centers. The following budgeted data pertain to these four departments:
| Support Departments | Producing Departments | ||||
| Maintenance | Personnel | Assembly | Painting | ||
| $200,000 | $60,000 | $43,000 | $74,000 | ||
| Square footage | — | 2,700 | 5,400 | 5,400 | |
| Number of employees | 30 | — | 72 | 198 | |
| Direct labor hours | — | — | 25,000 | 40,000 |
Required：
- Allocate the overhead cost of the support departments to the production department using the reciprocal method.
2. Using direct labour hours, compute departmental overhead rates.
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