Direct Method, Reciptocal Method, Ovirhead Patess Macalister Corporation is developing departmental overhead nates based on diect labor hours for its twa ncoduction desartments- Holsing and costa iare budgeted at 480,000 . Two support departments-ingineering and cieneral ractory-directly wepport the two production deputments and hime budgeted costs of {216,000 and $370,000, respectively. The producticn departments' prerhead rates cannot be determined untit the support departments' costs are kroperly allocated. The followind scheddalt reflects the use of the Engineering Department's and Gieneral Factory Department's output by the various denartments. For ail fequirements, round alfocation ratios to four sloniticant digits and rourd allocated coits to the nexreit dotace Required: charge the production departments for suppoit department costs. Found final aciswers to the nearest cent. 7. Calculate the overhead ratess per direct labor hour for the Moldifo Depurment and the Assembly Department uaing the redrecal method to charee zupport department costy to mach other and to the oroduction departments. Round final antwerts to the nearest cent, Round your inteimiediate calculations to four decirral places. 3. Explain the differenca between the methods, afid indicate the aroumants geberally prysented to support the reoprocal methed over the direst allocation method, (GMA sodsted) the reciprocal allocation method is preferred becouse it recoonizes that all support depiartments serve one amother. F Feechach T'Chece My work 1. Overhead rate is computud by adding the allocated survico costs to the overtead costs that are directiv traceable to the producng department and difitifig this total by some myasure of activity, such as derect labor hadri or machine houre. Direct Method, Reciptocal Method, Ovirhead Patess Macalister Corporation is developing departmental overhead nates based on diect labor hours for its twa ncoduction desartments- Holsing and costa iare budgeted at 480,000 . Two support departments-ingineering and cieneral ractory-directly wepport the two production deputments and hime budgeted costs of {216,000 and $370,000, respectively. The producticn departments' prerhead rates cannot be determined untit the support departments' costs are kroperly allocated. The followind scheddalt reflects the use of the Engineering Department's and Gieneral Factory Department's output by the various denartments. For ail fequirements, round alfocation ratios to four sloniticant digits and rourd allocated coits to the nexreit dotace Required: charge the production departments for suppoit department costs. Found final aciswers to the nearest cent. 7. Calculate the overhead ratess per direct labor hour for the Moldifo Depurment and the Assembly Department uaing the redrecal method to charee zupport department costy to mach other and to the oroduction departments. Round final antwerts to the nearest cent, Round your inteimiediate calculations to four decirral places. 3. Explain the differenca between the methods, afid indicate the aroumants geberally prysented to support the reoprocal methed over the direst allocation method, (GMA sodsted) the reciprocal allocation method is preferred becouse it recoonizes that all support depiartments serve one amother. F Feechach T'Chece My work 1. Overhead rate is computud by adding the allocated survico costs to the overtead costs that are directiv traceable to the producng department and difitifig this total by some myasure of activity, such as derect labor hadri or machine houre
