FSI Company allocates support department costs to production departments before establishing predetermined overhead rates for use in product costing.<\/p>
EngSupport costs are allocated to productive departments based on time of service while IT costs are allocated based on IT hours.<\/p>
DepartmentEngSupportITCuttingFinishingTotal<\/p>
Departmental overhead$2,000,000$2,000,000$3,000,000$2,000,000$9,000,000<\/p>
Time of service40506004501140<\/p>
IT hours1,0002,00012,0008,00023,000<\/p>
Cutting uses machine hours as a base for overhead allocation and expects to use100,000MH this year.<\/p>
Finishing uses direct labor hours as a base for overhead allocation and expects to use150,000DLH this year.<\/p>
During the year, Job 280 is completed. The job required:CuttingFinishing<\/p>
DLH200300<\/p>
MH400100<\/p>
Required:<\/p>
a.Do a <\/strong>cost allocation calculation\/table using the step method to put all overhead amounts into the productive departments.<\/p> b.Calculate the predetermind overhead rates for the productive departments.<\/p> c.Calculate the total overhead applied to Job 280.<\/p>",
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"related_book": {
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"edition": "2nd Canadian Edition",
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"cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/635f99b5717e0_1157.jpg",
"uri": "\/textbooks\/cost-management-measuring-monitoring-and-motivating-performance-2nd-canadian-edition-1157",
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"edition": "1st Edition"
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"question_posted": "2024-06-29 01:57:42",
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