FSI COMPANY(21 pts.)Information

IT support costs are allocated to productive departments based on time of service

while Rep&Maint costs are allocated based on hours.

DepartmentIT supportRep&MaintCuttingWeldingTotal

Departmental overhead$500,000$800,000$6,000,000$2,700,000$10,000,000

IT Time of service100605803601100

R&M hours30050024,00026,00050,800

Cutting uses machine hours as a base for overhead allocation and expects to use100,000MH this year.

Welding uses direct labor hours as a base for overhead allocation and expects to use70,000DLH this year.

During the year, Job 70B is completed. The job required:CuttingWelding

DLH120400

MH250100

Required:

Part 1.

a.Complet cost allocation calculation/table using the step method starting with IT

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 70B.