1. Direct Method

   Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:

   	Support Departments		Producing Departments
   	General Factory	Receiving	Assembly	Finishing
   Direct overhead	$400,000	$150,000	$44,000	$80,000
   Square footage		3,000	6,000	6,000
   Number of receiving orders	360		1,650	1,400
   Direct labor hours			26,000	43,000

   The company has decided to simplify its method of allocating support service costs by switching to the direct method.

   Required:

   1. Allocate the costs of the support departments to the producing departments using the direct method. Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar. Use the rounded values for subsequent calculations.

   Allocation ratios:

   	Assembly	Finishing
   Square footage
   Number of receiving orders
   Allocations:
   	Assembly	Finishing
   General Factory	$	$
   Receiving
   Direct costs
   Total	$	$

   2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)

   	Overhead Rate
   Assembly	per direct labor hour
   Finishing	per direct labor hour

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