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any help would be appreciated The Upward Hill Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: (Click the icon to
any help would be appreciated
The Upward Hill Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: (Click the icon to view the department overhead budgets.) Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following: (Click the icon to view the data.) Read the Leguirements_ Requirement 1. Using the step-down method, allocate support-department costs. Develop overhead rates per direct manufacturing labor-hour for machining and assembly. Allocate the costs of the support departments in the order given in this problem. use the allocation base for each support department you think is most appropriate. Begin by selecting the allocation base for each support department. Support Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Allocation Base Requirements 1. using the step-down method, allocate support-department costs. Develop overhead rates per direct manufacturing labor-hour for machining and assembly. Allocate the costs of the support departments in the order given in this problenm use the allocation base for each support department you think is most appropriate using the direct method, rework requirement 1. Based on the following information about two jobs, determine the total overhead costs for each job by using rates developed in (a) requirement 1 Data table Support departments: Building and grounds Personnel General plant administration Cafeteria: Operating loss Storeroom Operating departments: Machining Assembly Total for support and operating departments Data table Department Building and grounds Personnel* Direct Manufacturing Labor-Hours Square Feet of Indirect Number of Floor Space Manufacturing 5,600 1,908 36, 702 883 2,823 30,000 47,000 47,916 771000 124,916 Employees 36 45 81 180 Occupied Labor-Hours General plant administration Cafeteria: operating loss Storeroom Machining Assembly Total Basis used is number of employees 9,000 9,000 18,000 900 14,400 3,600 13,500 22,500 15,100 70,000 1,000 2,000 7,000 12,500 22,500 Number of Requisitions 3,000 1,000 4, ooo 2. 3. 4. and (b) requirement 2. Job 88 Job 89 print Done Direct Manufacturing LaborHours print Done Machining 18 11 Assembly 10 21 The company evaluates the performance of the operating department managers on the basis of how well they managed their total costs, including allocated costs. As the manager of the Machining Department, which allocation method would you prefer from the results obtained in requirements 1 and 2? Explain print Done
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