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B. 600 01:43:27 FSI COMPANY (21 pts.) Information IT support costs are allocated to productive departments based on time of service while Rep&Maint costs are
B. 600 01:43:27 FSI COMPANY (21 pts.) Information IT support costs are allocated to productive departments based on time of service while Rep&Maint costs are allocated based on hours. Department IT support Rep&Maint Cutting Welding Total Departmental overhead $1,000,000 $3,000,000 $4,000,000 $2,000,000 $10,000,000 IT Time of service 50 50 600 350 1050 R&M hours 500 20,000 10,000 31,100 Cutting uses machine hours as a base for overhead allocation and expects to use 120,000 MH this year. Welding uses direct labor hours as a base for overhead allocation and expects to use 80,000 DLH this year During the year, Job 70B is completed. The job required: Cutting Welding DLH 150 350 MH 400 200 Required: Part 1. a. Complete a cost allocation calculation/table using the step method starting with IT to put all overhead amounts into the productive departments. b. Calculate the predetermind overhead rates for the productive departments. c. Calculate the total overhead applied to Job 70B. Essay Toolbar navigation B IV $ 33 Ini !!! C aw 11 B. 600 01:43:27 FSI COMPANY (21 pts.) Information IT support costs are allocated to productive departments based on time of service while Rep&Maint costs are allocated based on hours. Department IT support Rep&Maint Cutting Welding Total Departmental overhead $1,000,000 $3,000,000 $4,000,000 $2,000,000 $10,000,000 IT Time of service 50 50 600 350 1050 R&M hours 500 20,000 10,000 31,100 Cutting uses machine hours as a base for overhead allocation and expects to use 120,000 MH this year. Welding uses direct labor hours as a base for overhead allocation and expects to use 80,000 DLH this year During the year, Job 70B is completed. The job required: Cutting Welding DLH 150 350 MH 400 200 Required: Part 1. a. Complete a cost allocation calculation/table using the step method starting with IT to put all overhead amounts into the productive departments. b. Calculate the predetermind overhead rates for the productive departments. c. Calculate the total overhead applied to Job 70B. Essay Toolbar navigation B IV $ 33 Ini !!! C aw 11
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