Homework Answers
1)
| Factory Administration | Custodial Services | Personnel | Maintenance | Machining | Assembly | ||
| Departmental cost before allocation | $819840 | $98337 | $26358 | $170555 | $1126484 | $618226 | |
| Allocations: | |||||||
| Factory Administration | -819840 | 44520 | 54040 | 133280 | 168000 | 420000 | |
| Custodial Services | -142857 | 11011 | 17446 | 85800 | 28600 | ||
| Personnel | -91409 | 17119 | 29716 | 44574 | |||
| Maintenance | -338400 | 211500 | 126900 | ||||
| Total cost after allocation | $0 | $0 | $0 | $0 | $1621500 | $1238300 | |
| Predetermined overhead rate | $9.20 | $6.10 | |||||
Factory Administration
Total number of labor hours other than factory administration= 292800 labor hours
Custodial Services= $819840*15900/292800= $44520
Personnel= $819840*19300/292800= $54040
Maintenance= $819840*47600/292800= $133280
Machining= $819840*60000/292800= $168000
Assembly= $819840*150000/292800= $420000
Custodial Services
Total cost of Custodial Services= $98337+44520= $142857
Total square feet occupied of the other four departments= 7700+12200+60000+20000= 99900
Personnel= $142857*7700/99900= $11011
Maintenance= $142857*12200/99900= $17446
Machining= $142857*60000/99900= $85800
Assembly= $142857*20000/99900= $28600
Personnel
Total cost of Personnel= $26358+54040+11011= $91409
Total number of employees of the other three departments= 53+92+138= 283
Maintenance= $91409*53/283= $17119
Machining= $91409*92/283= $29716
Assembly= $91409*138/283= $44574
Maintenance
Total cost Maintenance= $170555+133280+17446+17119= $338400
Total number of machine hours of the other two departments= 282000
Machining= $338400*176250/282000= $211500
Assembly= $338400*105750/282000= $126900
Predetermined overhead rate
Machining= Total cost allocated/Number of machine hours
= $1621500/176250= $9.20
Assembly= Total cost allocated/Number of labor hours
= $1238300/203000= $6.10
2)
| Factory Administration | Custodial Services | Personnel | Maintenance | Machining | Assembly | ||
| Departmental cost before allocation | $819840 | $98337 | $26358 | $170555 | $1126484 | $618226 | |
| Allocations: | |||||||
| Factory Administration | -819840 | 234240 | 585600 | ||||
| Custodial Services | -98337 | 73753 | 24584 | ||||
| Personnel | -26358 | 10543 | 15815 | ||||
| Maintenance | -170555 | 106597 | 63958 | ||||
| Total cost after allocation | $0 | $0 | $0 | $0 | $1551617 | $1308183 | |
| Predetermined overhead rate | |||||||
Factory Administration
Total labor hours of operating departments= 60000+150000= 210000
Machining = $819840*60000/210000= $234240
Assembly= $819840*150000/210000= $585600
Custodial Services
Total square feet occupied of operating departments= 60000+20000= 80000
Machining = $98337*60000/80000= $73753
Assembly= $98337*20000/80000= $24584
Personnel
Total number of employees of operating department= 92+138= 230
Machining = $26358*92/230= $10543
Assembly= $26358*138/230= $15815
Maintenance
Total number of machine hours of operating department= 176250+105750= 282000
Machining = $170555*176250/282000= $106597
Assembly= $170555*105750/282000= $63958
Predetermined overhead rate
Machining= = Total cost allocated/Number of machine hours
= $1551617/176250= $8.80
Assembly= Total cost allocated/Number of labor hours
= $1308183/203000= $6.44
3) Total direct labor hours= 321000 hours
Plantwide overhead rate= Total cost/Total direct labor hours
= $2859800/321000= $8.91
4) Step-down method
Machining= $9.20*260= $2392
Assembly= $6.10*84= $512.4
Direct method
Machining= $8.80*260= $2288
Assembly= $6.44*84= $540.96
Plantwide method= $8.91*116= $1033.56
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please help me to solve this problem, Thanks! Problem 48-6 Step-Down Method versus Direct Method; Predetermined...
please help me to solve this problem, Thanks!
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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...
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...
. L04-11 PROBLEM 48-6 Step-Down Method versus Direct Method: Predetermined Overhead Rates L04-10 The Sendai Co., Ltd. of Japan has budgeted costs in its various departments as follows for the coming year. Factory Administration $270,000 Custodial Services 68,760 Personnel 28.840 Maintenance 45,200 Machining-overhead 376,300 Assembly-overhead 175,900 Total cost $965,000 The company allocates service department costs to other departments in the order listed below. Number of Employees 12 Total Labor Hours Square Feet of Space Occupied Direct Labor- Houts Machine Houts...
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-...
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