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Exercise 7.22 Reciprocal Methods of the Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:

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Exercise 7.22 Reciprocal Methods of the Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments sgolfA General Factory Receiving Assembly Finishing Direct overhead $400,000 $160,000 $43,000 $74,000 Daox3 Square footage -16-outsv-else ofl gniew =0% Jiof or 5,400 5,400 Number of receiving orders 2, 700 300 Direct labor hours e is Ilse of noialoe boreM ouis Velds 1,680 1,020 25,000 40,000 Required: big Slenie s ni ersban brin visvo zlotbe 1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar.) lol Ise angbru digg 190 60 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)Exercise 7.23 Direct Method 2 101 iniog To-Jilge ordi Je blog ed bluon enovo Isill s OBJ Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating support service costs by switching to the direct method. Ka HOIOHO HISITJUM 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.) ab solvise estwoolle roniM assy izon To1 000,0852 to alzoo beregbud (sios 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)Exercise 7.24 Sequential Method OBJECTI Refer to the data in Exercise 7.22. The support departments are ranked in order of highest cost to lowest cost. amon shidoom GUO.S Barosfind and & instringsof an150901 Theged gnioubor of atnomeqeb spivise owt and moil nousdolls taco lator sift at ply Required: OOO,EV12 1. Allocate the costs of the support departments using the sequential method. (Round alloca- tion ratios to four significant digits. Round allocated costs to the nearest dollar.) 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest OBJECT cent. )Exercise 7.25 Physical Units Method ATOLA O Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows: able rite of Soap Direct materials $67,900 indiffieout . moubow Direct labor ong will alot 34,000 Weekword of Indones Overhead Bend tardi doubt 25,500 vieth esonbong Inalg aNT b At the split-off point, a batch yields 1,400 barlon, 2,600 selene, 2,500 plicene, and 3,500 cor- sol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $20 per unit, plicene sells for $26 per unit, and corsol sells for $35 per unit. aguero sen Yungnog A Carry out all percent calculations to four significant digits. floor beligmos jesinotes oil] Required: budgered costsooo.8852 weos aidsimay berogbud 1. Allocate the joint costs using the physical units method. 2. Suppose that the products are weighted as shown on the next page. wry of professionn amexo forh no thigh zest ons sethsays pruinboggs Ishopensen bris jews emup (continued)TOBL80 Required Barlon 1.0orteM lspongleft uniwollol ad Toelwenthings Selene e owl brin alasmisa 2.0 ibubong owt andvo Plicene 1.5 Corsol 2.5 quot seadr of mishog Allocate the joint costs using the weighted average method.ECTIVE 5 Exercise 7.26 Sales-Value-at-Split-off Method beardisvo Jomid Refer to Exercise 7.25 and allocate the joint costs using the sales-value-at-split-off method, ECTIVE 5 Exercise 7.27 Net Realizable Value Method, Decision to Sell at Split-off or Process Further Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were $50,000, and 14,000 units of overs and 36,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, $18,000; unders, $23,040. Overs sell for $2.00 per unit; unders sell for $3.14 per unit. oesteshi arvidoo Required: of bino?) 2sisi beerhove Isimamhagsb slugmoo aword model Joguib gnial) . 1. Allocate the $50,000 joint costs using the estimated net realizable value method. (.3050 2. Suppose that overs could be sold at the split-off point for $1.80 per unit. Should Pacheco sell overs at split-off or process them further? Show supporting computations

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