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Data table . $ Support departments: Building and grounds Personnel General plant administration Cafeteria: Operating loss Storeroom Operating departments: Machining Assembly Total for support and

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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 13,500 1,775 37,120 340 4,085 $ 56,820 35,000 51,100 86,100 $ 142,920 Data table Direct Manufacturing Number of Labor-Hours Employees 0 0 Indirect Manufacturing Labor-Hours 0 Number of Requisitions 0 0 0 0 0 0 40 Square Feet of Floor Space Occupied 0 2,500 4,000 2,000 1,000 27,500 113,000 0 Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Machining Assembly 0 0 10 0 5 0 0 9,000 9,000 2,000 3,000 8,000 14,000 55 3,000 2,000 140 18,000 250 150,000 27,000 5,000 Total Basis used is number of employees 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. Allocation Base Support Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Using the step-down method, allocate support-department costs. Allocate the costs of the support departments in the order given in this problem. (Round all indirect allocation rates to the nearest cent and all other computations to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.) Support Departments Operating Departments General Cafeteria Plant Operating Grounds Personnel Admin. Loss Storeroom Machining Assembly Costs incurred Bldg and Allocation of costs: Building and grounds Personnel General plant administration Cafeteria Storeroom Total budgeted costs of operating departments Develop overhead rates per direct manufacturing labor-hour for machining and assembly using the step-down method. (Round the overhead rates to three decimal places.) Overhead rate per direct manufacturing labor-hour Direct manufacturing labor-hours = Step-down method: Total costs allocated to department Machining Assembly Requirement 2. Using the direct method, rework requirement 1. Using the direct method, allocate support-department costs. (Round cost allocations to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.) Support Departments Operating Departments General Cafeteria Bldg and Plant Operating Grounds Personnel Admin. Loss Storeroom Machining Assembly Costs incurred Allocation of costs: Building and grounds Personnel General plant administration Cafeteria Storeroom Total budgeted costs of operating departments Develop overhead rates per direct manufacturing labor-hour for machining and assembly using the direct method. (Round the overhead rates to three decimal places.) Direct method: Overhead rate per direct manufacturing labor-hour Total costs allocated to department Direct manufacturing labor-hours Machining Assembly Requirement 3. Based on the information about two jobs, determine the total overhead costs for each job by using rates developed in (a) requirement 1 and (b) requirement 2. Start by computing the total overhead costs for each job using the rates developed in (a) requirement 1 (the step-down method.) (Round the total overhead costs to the nearest cent.) (a) Step-down method: Total Overhead Costs Job 88 Machining Assembly Total cost of Job 88 Job 89 Machining Assembly Total cost of Job 89 Now compute the total overhead costs for each job using the rates developed in (b) requirement 2 (the direct method). (Round the total overhead costs to the nearest cent.) (b) Direct method: Total Overhead Costs Job 88 Machining Assembly Total cost of Job 88 Job 89 Machining Assembly Total cost of Job 89 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 13,500 1,775 37,120 340 4,085 $ 56,820 35,000 51,100 86,100 $ 142,920 Data table Direct Manufacturing Number of Labor-Hours Employees 0 0 Indirect Manufacturing Labor-Hours 0 Number of Requisitions 0 0 0 0 0 0 40 Square Feet of Floor Space Occupied 0 2,500 4,000 2,000 1,000 27,500 113,000 0 Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Machining Assembly 0 0 10 0 5 0 0 9,000 9,000 2,000 3,000 8,000 14,000 55 3,000 2,000 140 18,000 250 150,000 27,000 5,000 Total Basis used is number of employees 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. Allocation Base Support Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Using the step-down method, allocate support-department costs. Allocate the costs of the support departments in the order given in this problem. (Round all indirect allocation rates to the nearest cent and all other computations to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.) Support Departments Operating Departments General Cafeteria Plant Operating Grounds Personnel Admin. Loss Storeroom Machining Assembly Costs incurred Bldg and Allocation of costs: Building and grounds Personnel General plant administration Cafeteria Storeroom Total budgeted costs of operating departments Develop overhead rates per direct manufacturing labor-hour for machining and assembly using the step-down method. (Round the overhead rates to three decimal places.) Overhead rate per direct manufacturing labor-hour Direct manufacturing labor-hours = Step-down method: Total costs allocated to department Machining Assembly Requirement 2. Using the direct method, rework requirement 1. Using the direct method, allocate support-department costs. (Round cost allocations to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.) Support Departments Operating Departments General Cafeteria Bldg and Plant Operating Grounds Personnel Admin. Loss Storeroom Machining Assembly Costs incurred Allocation of costs: Building and grounds Personnel General plant administration Cafeteria Storeroom Total budgeted costs of operating departments Develop overhead rates per direct manufacturing labor-hour for machining and assembly using the direct method. (Round the overhead rates to three decimal places.) Direct method: Overhead rate per direct manufacturing labor-hour Total costs allocated to department Direct manufacturing labor-hours Machining Assembly Requirement 3. Based on the information about two jobs, determine the total overhead costs for each job by using rates developed in (a) requirement 1 and (b) requirement 2. Start by computing the total overhead costs for each job using the rates developed in (a) requirement 1 (the step-down method.) (Round the total overhead costs to the nearest cent.) (a) Step-down method: Total Overhead Costs Job 88 Machining Assembly Total cost of Job 88 Job 89 Machining Assembly Total cost of Job 89 Now compute the total overhead costs for each job using the rates developed in (b) requirement 2 (the direct method). (Round the total overhead costs to the nearest cent.) (b) Direct method: Total Overhead Costs Job 88 Machining Assembly Total cost of Job 88 Job 89 Machining Assembly Total cost of Job 89

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