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Ancaster Corporation has one support department, Engineering Services, and two production departments. Machining and Assembly The following data relate to the 2020 budget for
Ancaster Corporation has one support department, Engineering Services, and two production departments. Machining and Assembly The following data relate to the 2020 budget for the Engineering Services Department (Click the icon to view the budget data for 2020) Read the requirements Requirement 1. Using the single tate method calculate the cost to be allocated to the Machining and Assembly Departments if the allocation rate is based on budgeted costs and budgeted quantity of Engineering Service and allocated based on actual Engineering Services hours used in each department Begin by determining the rate per hour used to allocate engineering services department costs to the machining and assembly departments Budgeted total rate per hour is Now, we can allocate the engineering services costs to the machining and assembly departments, under the single-rate method Machining department Assembly department, Requirement 2. Using the dual-rate method, calculate the cost to be allocated to the Machining and Assembly Departments if (a) variable costs are allocated based on the budgeted variable cost per hour for actual hours used in each department and (b) fixed costs are allocated based on budgeted foxed costs per hour and the budgeted number of hours for each department Before completing the allocation, calculate the budgeted fixed cost rate per hour
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