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2.4 1 points eBook Exercise 4-2A (Algo) Allocating costs between divisions LO 4-2 Adams Services Company has 64 employees, 20 of whom are assigned to
2.4 1 points eBook Exercise 4-2A (Algo) Allocating costs between divisions LO 4-2 Adams Services Company has 64 employees, 20 of whom are assigned to Division A and 44 to Division B. Adams incurred $385,920 of fringe benefits cost during year 2. Required Determine the amount of the fringe benefits cost to be allocated to Division A and to Division B. Fles Division Print Allocated Cost A References B 2 2.4 points eBook Files Print References Baird Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include the following. Factory manager's salary Factory utility cost Factory supplies Total overhead costs $246,500 74,000 28,000 $348,500 Baird uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows. Cupe 300 Hours 750 Tablecloths Bottles 1,000 Total machine hours 2,050. Required a. Allocate the budgeted overhead costs to the products. Product Allocation Rate x Weight of Base Allocated Cost Cups Tablecloths Bottles Total x $ 0 0 0 $ 0
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