Kumar Company has two producing departments and two support centers. The following budgeted data pertain to these four departments:

Required:
1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. Bases for allocation are: maintenance'square footage, personnel'number of employees. (Round to the nearest dollar.)
2. Using direct labor hours, compute departmental overhead rates for the two producing departments. (Round to the nearestcent.)

Transcribed Image Text:

Support Departments Producing Departments Maintenance Personnel Assembly Painting Overhcad Square footage Number of employees Direct labor hours $200,000 $43,000 5,400 72 25,000 $74,000 5,400 198 40,000 S60,000 2,700 30