Erentsen Army and Navy Supplies Inc., has three departments: two production departments and one service department. A process cost accumulation system is used to accumulate costs.  lop2

Transcribed Image Text:

PRODUCTION DEPARTMENTS Service department 2 repair shop Machine hours.. 1,800 1,700 Direct labor hours.. 3,500 2,500 Percentage of plant capacity. 100% 100% 100% Factory overhead: Indirect labor. $6,650 $5,025 $6,650 Supervision... 4,750 3,000 6,125 Indirect materials 2,625 1,650 2,975 Depreciation (straight-line) 2,050 1,990 850 Rent expense.. 1,000 875 900 Miscellaneous 875 825 700 *Production department costs do not include service department costs. Fixed expenses are supervision, depreciation, and rent expense; the other expenses are variable. Required: Prepare a static factory overhead budget for the production departments and the service department at an 80% capacity level.