Overhead Reapportionments Already Given; Determine Bases Used Listed below are the Kurt Company’s departmental overhead budgets for a normal activity level, overhead costs reapportioned by department utilizing predeter- mined rates, and a few operating and plant statistics for the period con- cerned. Assume that 15,000 direct-labor hours were worked in each producing department.

REAPPORTIONED COSTS (STEP METHOD)

Budgeted General Normal Employment Plant Vulcanizing Assembly Activity Service Administration Lunchroom Storeroom Department Department Janitorial Service $ 8,000 $300 $600 $ 900 $1,600 $2,300 $ 2,300 Employment Service 3,700 300 200 200 1,300 2,000 General Plant Adm. 19,100 1,000 750 8,250 10,000 Lunchroom 1,400 200 1,300 2,000 Storeroom 250 2,100 900 Vulcanizing Dept. 14,750 Assembling Dept. 22,800

$70,000 Total number of square feet 80,000 Total number of employees 200 Total number of labor-hours 40,000 Total direct-labor hours 30,000 Total number of requisitions 1,000 required 1. In tabular fashion:

(a) Determine the most logical bases for reapportionment.

(b) List the total costs reapportioned to each plant operation.

(c) Compute rates for reapportionment (that is, janitorial service is 10¢ per square foot, and so on).

(d) List the following data for each plant operation:

Number of the square feet utilized.

Number of employees assigned.

Number of total labor-hours assigned.

Number of direct-labor hours utilized.

Number of requisitions initiated.

2. Compute the overhead rate per direct-labor hour for the two departments.

3. Compute a plantwide overhead application rate with direct-labor hours as the base.