Direct Method, Reciprocal Method, Overhead Rates Macalister Corporation is developing departmental overhead rates based on direct...
Direct Method, Reciprocal Method, Overhead Rates
Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production departments—Molding and Assembly. The Molding Department employs 16 people, and the Assembly Department employs 79 people. Each person in these two departments works 1,970 hours per year. The production-related overhead costs for the Molding Department are budgeted at $194,000, and the Assembly Department costs are budgeted at $83,000. Two support departments—Engineering and General Factory—directly support the two production departments and have budgeted costs of $201,000 and $386,000, respectively. The production departments’ overhead rates cannot be determined until the support departments’ costs are properly allocated. The following schedule reflects the use of the Engineering Department’s and General Factory Department’s output by the various departments.
| Engineering | General Factory | Molding | Assembly | |
| Engineering hours | — | 2,400 | 1,900 | 8,100 |
| Square feet | 90,450 | — | 428,130 | 84,420 |
For all requirements, round allocation ratios to four significant digits and round allocated costs to the nearest dollar.
Required:
1. Calculate the overhead rates per direct labor hour for the Molding Department and the Assembly Department using the direct allocation method to charge the production departments for support department costs. Round final answers to the nearest cent.
| Overhead rate per DLH | |
| Molding | $ |
| Assembly | $ |
2. Calculate the overhead rates per direct labor hour for the Molding Department and the Assembly Department using the reciprocal method to charge support department costs to each other and to the production departments. Round final answers to the nearest cent. Round your intermediate calculations to four decimal places.
| Overhead rate per DLH | |
| Molding | $ |
| Assembly | $ |
Homework Answers
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Direct Method,
Reciprocal Method, Overhead Rates
Macalister Corporation
is developing departmental overhead rates based on direct...
Direct Method, Reciprocal Method, Overhead Rates Macalister Corporation is developing departmental overhead rates based on direct...
Direct Method, Reciprocal Method, Overhead Rates Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production departments—Molding and Assembly. The Molding Department employs 20 people, and the Assembly Department employs 76 people. Each person in these two departments works 2,140 hours per year. The production-related overhead costs for the Molding Department are budgeted at $203,000, and the Assembly Department costs are budgeted at $99,000. Two support departments—Engineering and General Factory—directly support the two production...
Direct Method, Reciprocal Method, Overhead Rates Macalister Corporation is developing departmental overhead rates based on direct...
Direct Method, Reciprocal Method, Overhead Rates Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production departments ---Molding and Assembly. The Molding Department employs 20 people, and the Assembly Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Molding Department are budgeted at $190,000, and the Assembly Department costs are budgeted at $80,000. Two support departments-Engineering and General Factory--directly support the two...
Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production...
Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production departments—Molding and Assembly. The Molding Department employs 16 people, and the Assembly Department employs 79 people. Each person in these two departments works 1,970 hours per year. The production-related overhead costs for the Molding Department are budgeted at $194,000, and the Assembly Department costs are budgeted at $83,000. Two support departments—Engineering and General Factory—directly support the two production departments and have budgeted costs of...
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Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production...
Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000, and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments...
plzz help 4 Problem 17-33 Reciprocal-Service Method (Appendix) (LO 17-6) points Celestial Artistry Company is developing...
plzz help
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Calculating Departmental Overhead Rates Using Post-Allocation Costs Valron Company has two support departments, Human Resources and...
Calculating Departmental Overhead Rates Using Post-Allocation Costs Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct easts $160,000 $340,000 $114,600 593,000 Normal activity: Number of employees 60 30 170 13,300 Square footage 1,000 5,700 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the...
Direct Method, Reciprocal Method, Overhead Rates Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production departments ---Molding and Assembly. The Molding Department employs 20 people, and the Assembly Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Molding Department are budgeted at $190,000, and the Assembly Department costs are budgeted at $80,000. Two support departments-Engineering and General Factory--directly support the two...
Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 30 people and the Finishing Department employs 70 people. Each person in these two departments works 1,800 hours per year. The production-related overhead costs for the Etching Department are budgeted at $220,000, and the Finishing Department costs are budgeted at $340,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments...
Problem 17-33 Reciprocal-Service Method (Appendix) (LO 17-6) Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 people. Each person in these two departments works 1,200 hours per year. The pr at $120,000, and the Finishing Department costs are budgeted at $240,000. Two service departments, Maintenance and Computing. directly support the two production departments. These service departments have...
plzz help
4 Problem 17-33 Reciprocal-Service Method (Appendix) (LO 17-6) points Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 25 people and the Finishing Department employs 75 people. Each person in these two departments works 1,700 hours per year. The production- related overhead costs for the Etching Department are budgeted at $170,000, and the Finishing Department costs are budgeted at $290,000. Two service departments,...
Calculating Departmental Overhead Rates Using Post-Allocation Costs Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct easts $160,000 $340,000 $114,600 593,000 Normal activity: Number of employees 60 30 170 13,300 Square footage 1,000 5,700 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the...
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