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EXAMPLE COMPANY Information Rep&Maint costs are allocated to other departments based on time of service while QC costs are allocated based on computing hours Department

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EXAMPLE COMPANY Information Rep&Maint costs are allocated to other departments based on time of service while QC costs are allocated based on computing hours Department Rep&Maint QC Machining Assembly Total Departmental overhead $2.000.000 $3,000,000 $4,000,000 $1,000,000 $10,000,000 Time of service 40 508001501040 Computing hours 1,000 2,000 12000 8,000 23.000 Machining uses machine hours as a base for overhead allocation and expects to use 100,000 MH this year. Assembly uses direct labor hours as a base for overhead allocation and expects to use 200,000 DLH this year. During the year, Job 280 is completed. The job required: Machining Assembly DLH 100 300 MH 500 100 Required: a. Complete a cost allocation calculation table using the step method, starting with RepsMaint, to put all overhead amounts into the productive departments b. Calculate the predetermind overhead rates for the productive departments c Calculate the total overhead applied to Job 280

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