Factory Administration |
Custodial Services |
Personnel |
Maintenance |
Machining |
Assembly |
|
Step-down method |
376300 |
175900 |
||||
Operating department costs |
(270000) |
68760 |
28840 |
45200 |
||
Costs to be allocate |
||||||
Allocations: |
||||||
Factory Administration |
(270000) |
5400 |
9000 |
39600 |
54000 |
162000 |
Custodial Services |
(74160) |
2160 |
7200 |
50400 |
14400 |
|
Personnel |
(40000) |
8000 |
12800 |
19200 |
||
Maintenance |
(100000) |
87500 |
12500 |
|||
Total overhead after allocations |
0 |
0 |
0 |
0 |
581000 |
384000 |
Divide by machine-hours |
70000 |
|||||
Divide by direct labor-hours |
80000 |
|||||
Overhead rate |
$8.30 |
$4.80 |
Factory Administration = 270000/150000 = 1.80*3000; 5000; 22000; 30000; 90000
Custodial Services = (68760+5400)/(3000+10000+70000+20000) = 0.72*3000; 10000; 70000; 20000
Personnel = (28840+9000+2160)/(25+40+60) = 320*25; 40; 60
Maintenance = (45200+39600+7200+8000)/(70000+10000) = 1.25*70000; 10000
Part 2
Factory Administration |
Custodial Services |
Personnel |
Maintenance |
Machining |
Assembly |
|
Step-down method |
376300 |
175900 |
||||
Operating department costs |
(270000) |
68760 |
28840 |
45200 |
||
Costs to be allocate |
||||||
Allocations: |
||||||
Factory Administration |
(270000) |
67500 |
202500 |
|||
Custodial Services |
(68760) |
53480 |
15280 |
|||
Personnel |
(28840) |
11536 |
17304 |
|||
Maintenance |
(45200) |
39550 |
5650 |
|||
Total overhead after allocations |
0 |
0 |
0 |
0 |
548366 |
416634 |
Divide by machine-hours |
70000 |
|||||
Divide by direct labor-hours |
80000 |
|||||
Overhead rate |
$7.834 |
$5.208 |
Factory Administration = 270000*30/120; 90/120
Custodial Services = 68760*70/90; 20/90
Personnel = 28840*40/100; 60/100
Maintenance = 45200*70/80; 10/80
Part 3
Plant wide overhead rate = total overhead cost / total direct labor hours = 965000/100000 = $9.65 per DLH
Part 4
Step-down method: |
|
Machining Department: $8.30 per machine-hour × 190 machine-hours |
1577 |
Assembly Department: $4.80 per direct labor-hour × 75direct labor hours |
360 |
Total overhead cost |
$1937 |
Direct method: |
|
Machining Department: $7.834 per machine-hour × 190 machine-hours |
1488 |
Assembly department: $5.208 per direct labor-hour × 75direct labor hours |
391 |
Total overhead cost |
1879 |
Plantwide method: |
|
$9.65 per direct labor-hour × 100 direct labor-hours |
$965 |
Homework i Saved Help Save & Exit Check The Sendai Co., Ltd., of Japan has budgeted...
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Problem 4B-6 Step-Down Method versus Direct Method; Predetermined Overhead Rates [LO4-10, LO4-11] The Sendai Co., Ltd., of Japan has budgeted costsin its various departments as follows for the coming уear: Factory Administration Custodial Services 825,470 108,831 Personnel 28,970 60,569 633,098 865,282 $2,522,220 Maintenance Machining-overhead Assembly-overhead Total cost The company allocates service department coststo other departments in the order listed below. Square Feet of Total Direct Number of Labor Labor- Machine- Space Hours Occupied Employees Department Factory Administration Custodial Services Hours...
please help me to solve this problem, Thanks!
Problem 48-6 Step-Down Method versus Direct Method; Predetermined Overhead Rates (L04-10, LO4. The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for the coming year. Tactory Administration Custodial Services Personnel Maintenance Machining-overhead Assembly-overhead Total cost $ 819,840 98,337 26, 358 170,555 1,126,484 618.226 $2,859,800 The company allocates service department costs to other departments in the order listed below. Square Total Feet of Direct Number of Labor-...