DD Company has two departments, Dept. A and Dept. You are provided the following costs for...
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DD Company has two departments, Dept. A and Dept. You are provided the following costs for five activities that occur at the manufacturing plant every month: Activity Material handling Supervision of direct labor Janitorial and cleaning Machining Total Costs (SAR) 315,000 180,000 250,000 350,000 Total number of units of Cost Driver 450,000 parts 110 employees 5,500 hours 8,500 machine hours Total costs 1,095,000 The above activities are used by the two departments as follows: Department A 220,000 parts Supervision of direct labor 65 employees 2,500 hours Number of machine hours 6.000 machine hours Department B 230,000 parts 45 employees 3,000 hours 2.500 machine hours Material handling Time spent cleaning a. How much of the material handling cost will be allocated to Department A? b. What is the ABC allocation rate for supervision of direct labor? DD Company has two departments, Dept. A and Dept. You are provided the following costs for five activities that occur at the manufacturing plant every month: Activity Material handling Supervision of direct labor Janitorial and cleaning Machining Total Costs (SAR) 315,000 180,000 250,000 350,000 Total number of units of Cost Driver 450,000 parts 110 employees 5,500 hours 8,500 machine hours Total costs 1,095,000 The above activities are used by the two departments as follows: Department A 220,000 parts Supervision of direct labor 65 employees 2,500 hours Number of machine hours 6.000 machine hours Department B 230,000 parts 45 employees 3,000 hours 2.500 machine hours Material handling Time spent cleaning a. How much of the material handling cost will be allocated to Department A? b. What is the ABC allocation rate for supervision of direct labor?
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