Direct Method Reciprocal Method, Overhead Rates Macester Corporation is developing departmental overhead rates based on direct labor hours for its two production departments - Molding and Assembly. The Molding Department employs 24 people, and Assembly Department employs 78 people. Each person in these two departments works 2,140 hours per year. The production related overhead costs for the Molding Department are budgeted at $214,000, and the embly Department costs are budgeted at $81,000. To support departments-Engineering and General Factory-directly support the two production departments and have udpeted costs of $231.000 and 5405,000, respectively. The production departments overhead rates cannot be determined until the support departments' costs are property allocated. The following schedule reflects the use of the Engineering Departments and General Factory Department's output by the various departments Engineering General Factory Molding Assembly Engineering hours 2,100 2.100 7.900 Smare feet 115,710 420,210 73,000 for all requirements, round allocation ratios to four significant digits and round allocated costs to the nearest dollar Required: 1. Calculate the overhead rates per direct labor hour for the Molding Department and the Assembly Desartment using the direct location method to charge the prodoction departments for support oroartment costs. Hound final answers to the nearest cent. Overhead rate per DK Ash 2. Calculate the overhead rates per direct bor hour for the Molding Department and the Assembly Department using the reciprocal method to charge suport department costs to each other and to the production departments Round final answers to the nearest cent. Round your intermediate calculations to four decimal places Overhead rate per DLH Molding Assembly Orect Method Reciprocal Method, Overhead Rates Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production departments - Molding and Assembly. The Molding Department employs 24 people, and the Assembly Department employs 7 people. Each person in these two departments works 2,140 hours per year. The production-related overhead costs for the Molding Department are budgeted at 214.000, ne the embly Department costs are budgeted at $81,000. The support departments --Engineering and General Factory-directly support the two production departments and have budgeted costs of 231,000 and 405,000, respectively. The production departments' overhead rates cannot be determined until the support departments costs are properly allocated. The following schedule reflects the use of the Engineering Departments and General Factory Department's output by the various departments Engineering General Factory Molding Assembly Engineering hours 2.100 2,100 7.900 Square feet 115.710 420,210 73,000 For all requirements, round allocation ratios to four significant digits and round allocated costs to the nearest dollar Requiredi 1. Co the overhead rotes per direct labor hout for the Molding Department and the wombly Department wing the direct miocation method to charge the production departments for support tever there cost Round final answers to the nearest cent. Overhead rate per DLH Multing Army 2. Ce the overhead rates per rector houe for the Holding Department and the Assembly Department using the reciproc method to charge department costs to each other and to the production department Hound final answers to the nearest cent. Round your intermediate calculations to four decimal places. Overhead rate per DLH Molding DO Assembly
