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Direct Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain t
Square footage 0.4 x 0.4 X Number of receiving orders 0.56 x Allocations: Assembly Finishing General Factory Receiving Direct
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1.

Assembly Finishing
Square footage 0.5 0.5 [Ratio of 5400 :5400]
Number of receiving orders 0.6222 0.3778 [Ratio of 1680 :1020]
Assembly Finishing Allocation calc.
General Factory 200,000 200,000 [400000*0.5 ; 400,000*0.5]
Receiving 99552 60448 [160000*0.6222 ; 160,000*0.3778]
Direct costs 43000 74000
Total 342,552 334,448

2.

Overhead rate
Assembly 13.70 [342,552/25,000]
Finishing 8.36 [334,448/40,000]
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