Homework Answers
Allocation ratio
| Receiving | Assembly | Finishing | |
| Square footage | 1 | 2 | 2 |
| Number of receiving orders | - | 84 | 51 |
Allocation
| General factory | Receiving | Assembly | Finishing | |
| Direct overhead cost | 400,000 | 160,000 | 43,000 | 74,000 |
| Allocate: | ||||
| General factory | -400,000 | 80,000 | 160,000 | 160,000 |
| Receiving | -240,000 | 149,333 | 90,667 | |
| Total | 0 | 0 | 352,333 | 324,667 |
Overhead rate
| Assembly | 352,333 / 25,000 = 14.09 per direct labour hour |
| Finishing | 324,667 / 40,000 = 8.12 per direct labour hour |
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Sequential Method Eilers Company has two producing departments and two support departments. The following budgeted...
Sequential Method Eilers Company has two producing departments and two support departments. The following budgeted data...
Sequential Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments General Factory Receiving Assembly Finishing Direct overhead $400,000 $160,000 $43,000 $74,000 Square footage — 2,700 5,400 5,400 Number of receiving orders 300 — 1,680 1,020 Direct labor hours — — 25,000 40,000 The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the costs of the support departments using...
Direct Method Eilers Company has two producing departments and two support departments. The following budgeted data...
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Sequential (Step) Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources...
Sequential (Step) Method of Support Department Cost Allocation 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 costs $160,000 $340,000 $114,600 $93,000 Normal activity: Number of employees — 60 80 170 Square footage 1,000 — 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are...
Chapter 7 Allocating Costs of S wart Departments and Joint Products Exercise 7.22 Reciprocal Method alers...
Chapter 7 Allocating Costs of S wart Departments and Joint Products Exercise 7.22 Reciprocal Method alers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: OBJECTIVE Support Departments General Factory Receiving S400,000 $160,000 Direct overhead Square footage Number of receiving orders Direct labor hours Producing Departments Assembly Finishing S43,000 $74,000 5.400 5,400 1,680 1,020 25,000 40.000 2,700 300 Required: Allocate the overhead costs of the support departments to the producing departments...
Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources an...
Direct Method of Support Department Cost Allocation 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 costs $160,000 $340,000 $114,600 $93,000 Normal activity: Number of employees 60 80 120 170 Square footage 1,000 5,700 13,300 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...
Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and...
Direct Method of Support Department Cost Allocation 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 costs $160,000 $340,000 $114,600 $93,000 Normal activity: Number of employees — 60 80 170 Square footage 1,000 — 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated...
Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and...
Direct Method of Support Department Cost Allocation 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 costs $160,000 $340,000 $114,600 $93,000 Normal activity: Number of employees — 60 80 170 Square footage 1,000 — 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated...
Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and...
Direct Method of Support Department Cost Allocation 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 costs $150,000 $330,000 $114,200 $94,000 Normal activity: Number of employees — 60 80 170 Square footage 1,000 — 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated...
Reciprocal Method of Support Department Cost AllocationValron Company has two support departments, Human Resources and...
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Direct Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Producing Departments Support Departments General Factory Receiving Finishing Assembly $43,000 Direct overhead $400,000 $160,000 $74,000 5,400 Square footage Number of receiving orders 2,700 - 5,400 1,680 1,020 Direct labor hours - 25,000 40,000 The company has decided to simplify its method of allocating support service costs by switching to the direct method. Required: 1. Allocate the costs of the...
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