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Homework i Saved Help Save & Exit Check The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follo
Saved Help Save & Exit Submit Check my work Machining and Assembly are operating departments, the other departments are servi
Help Save & Exit Submit Check my work Required 1 Required 2 Required 3 Required 4 Allocate service department costs to consum
Help Save & Exit Sub Check my work Required 1 Regu Required 3 Required 4 Repeat requirement 1, this time using the direct met
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Answer #1

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

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