Question
ABC company has two producing departments and three support departments. The following budgeted data pertain to these five departments: Allocate the overhead costs of the
ABC company has two producing departments and three support departments. The following budgeted data pertain to these five departments:
Allocate the overhead costs of the support departments to the producing departments using the step (sequential) method. Bases for allocation are: maintenance square footage, purchasing purchase orders, and personnel number of employees. (Round intermediate steps to four decimal places and the final answer to the nearest dollar)
Allocate in the following sequence: 1. Maintenance 2. Purchasing 3. Personnel
1. Total cost of Assembly (including its own overhead cost):
2. Total cost of Painting (including its own overhead cost):
Support (Service) Departments Producing (User) Departments Maintenance Purchasing PersonnelAssembly Painting Overhead Cost $650,000 $550,000 $450,000 $150,000$125,000 Square footage 1,250 750 15 25 7,500 125 450 65,000 2,500 10 75 5,500 125 350 30,000 Number of employees Purchase orders Direct labor hours 75 150Step by Step Solution
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