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562 hours (8.3A) Complete a worksheet for prorating service department costs. (Obj. 4). DLM Dress Manufacturers, Inc. is divided into service departments and producing departments.
562 hours (8.3A) Complete a worksheet for prorating service department costs. (Obj. 4). DLM Dress Manufacturers, Inc. is divided into service departments and producing departments. The Chapter 8 Setting Overhead Rates 183 Warehousing Department which carries out receiving, storing, and shipping functions, and the Maintenance Depatite service departments. The Cutting, Sewing, and Finishing Departments are produzcay departments. The Maintenance Department serves the other departments in proportion to the area occupied by each department. Department Warehousing Cutting Sewing Finishing Square Feet Occupied 10,500 17,500 14,000 28,000 The costs of the Warehousing Department are allocated to the producing departments on the basis of the number of materials requisitions processed. Department Cutting Sewing Finishing Number of Materials Requisitions 3,920 5,880 4,200 4,200 Instructions 1. Prepare a worksheet for prorating estimated service department costs for the year 2006. The budgeted departmental overhead is as follows: Department Maintenance Warehousing Cutting Sewing Finishing Estimated Direct Departmental Overhead Costs $29,210 21,390 35,870 41,552 26,760 2. Summarize your computations for the bases and the prorations on three-column analy- sis paper. (Keep your papers for use in Problem 8.4A.) This problem is a continuation of
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