Stubing Company has two producing departments and two support centres. The following budgeted data pertain to these four departments: Maintenance and Personnel are the support centres and Assembly and Painting are the producing departments. Maintenance Personnel Assembly Painting Overhead $200,000 S60,000 $43,000 $74,000 5,400 5,400 Square footage 2,700 72 198 Employees 30 25,000 40,000 Direct labour hours Required () Allocate the overhead costs of the support departments to the producing departments using the reciprocal method Using direct labour hours compute departmental overhead rates
Stubing Company has two producing departments and two support centres. The following budgeted data pertain to these four departments: Maintenance and Personnel are the support centres and Assembly and Painting are the producing departments. Maintenance Personnel Assembly Painting Overhead $200,000 S60,000 $43,000 $74,000 5,400 5,400 Square footage 2,700 72 198 Employees 30 25,000 40,000 Direct labour hours Required () Allocate the overhead costs of the support departments to the producing departments using the reciprocal method Using direct labour hours compute departmental overhead rates
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer both parts
Transcribed Image Text:Stubing Company has two producing departments and two support centres. The following budgeted
data pertain to these four departments:
Maintenance and Personnel are the support centres and Assembly and Painting are the producing
departments.
Maintenance
Personnel
Assembly
Painting
Overhead
$200,000
$60,000
$43,000
$74,000
5,400
5,400
Square footage
2,700
72
198
Employees
30
25,000
40,000
Direct labour hours
Required
(0)
Allocate the overhead costs of the support departments to the producing departments
using the reciprocal method
Using direct labour hours compute departmental overhead rates
(u)
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