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Calculating Departmental Overhead Rates Using Post - Allocation Costs Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating
Calculating Departmental Overhead Rates Using PostAllocation Costs
Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.
Support Departments Producing Departments
Human
Resources General
Factory Fabricating Assembly
Direct costs $ $ $ $
Normal activity:
Number of employees
Square footage
The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Chekov Company uses the direct method of support department cost allocation. Solve for the allocated costs to Fabricating and Assembly using the direct method of support department cost allocation. The Fabricating Department overhead rate is based on normal activity of machine hours. The Assembly Department overhead rate is based on normal activity of direct labor hours.
Job required nine machine hours in Fabricating and three direct labor hours in Assembly. Total direct materials cost $ and total direct labor cost was $
Required:
Calculate the overhead rate for Fabricating based on machine hours and the overhead rate for Assembly based on direct labor hours. If required, round your answers to the nearest cent. Use the rounded values for subsequent calculations.
Overhead Rate
Fabricating department $fill in the blank
per mach. hr
Assembly department $fill in the blank
per DLH
Using the overhead rates calculated in Requirement calculate the cost of Job If required, round your answer to the nearest cent.
$fill in the blank
What if Job had required two machine hour in Fabricating and three direct labor hours in Assembly? Direct labor and direct materials costs remained the same. Calculate the new cost of Job If required, round your answer to the nearest cent.
$fill in the blank
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