Chapter 7 Homework Direct costs Normal activity: Number of employees Human General Resources Factory $175,000 $330,000 1,200 eBook 65 S Fabricating Assembly $97,000 S $114,100 Square footage 3,600 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. Valron 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 88,000 machine hours. The Assembly Department overhead rate is based on normal activity of 175,000 direct labor hours. Job 316 required nine machine hours in Fabricating and three direct labor hours in Assembly. Total direct materials cost $120, and total direct labor cost was $80. Overhead Rate 60 Required: 1. 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. 90 per mach. hr. per DLH 14,400 Fabricating department Assembly department 2. Using the overhead rates calculated in Requirement 1, calculate the cost of Job 316. If required, round your answer to the nearest cent. 3. What if Job 316 had required one 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 316. If required, round your answer to the nearest cent.

The costs of the ruman Pesburces Department are altocated on the basis of number of ginfloyees, and the costs of Ctneral Factory are anbcated on une basi? of square footage. Vairso Comparty uses the direct method of support degartment cost allocibion. Solve for the allocated cants to Fabricating and Assembly using the dired method of support department cost allocation. Dhe Fabricalina Depertment overtiead rate is based on normal actlvity of Bs, obo machune liours. The Assembly Department overhead rate is based on normal activity of 175,000 direct labor bours. Job 316 required nine machine hours in Fabricating and three direct labor nours in Assenbly. Total dired materiats cost si20. and total direct labor cost was stio. Required: 1. Caloulate the overtiead rate for Fabricating based on machwe how and the overthatd rate for Asseinbly based on direct labor hours. If reguirad, round youa answers to the nearest cent Use the roended values for subsequent calivistions. same Calculate the nea cost of Job 316. If raquired, round your ampwer to tf nedect cant