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Direct Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Direct overhead Square
Direct Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Direct overhead Square footage Number of receiving orders Direct labor hours Support Departments General Factory Receiving Producing Departments Assembly Finishing $410,000 $160,000 $49,000 $78,000 2,600 5,200 5,200 400 1,600 1,400 24,000 41,000 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 allocate costs to the nearest dollar. Use the rounded values for subsequent calculations. Allocation ratios: Assembly Finishing Square footage 0.5 0.5 Number of receiving orders 0.53 X 0.47 X Allocations: General Factory Check My Work Assembly 205,000 Finishing 205,000 All work saved. Previous Next Save and Exit Submit Assignment for Grad
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