I have attached the questions in word doc, and attached a screen shot of each question as well. This assignment is due by 8pm tomorrow 04/05/15.
Sequential Method of Support Department Cost Allocation Stevenson Company is divided into two operating divisions: Battery and Small Motors. Assume that Stevenson uses the sequential method to allocate support department costs to the operating divisions. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. General Factory is allocated first in the sequential method for the company. Support department cost allocations are based on the following data: Support Departments Power Operating Divisions General Factory Battery Small Motors Overhead costs $160,000 $430,000 $163,000 $84,600 Machine hours 2,000 2,000 7,500 2,500 Square footage 1,000 1,500 7,500 20,000 18,000 60,000 Direct labor hours Required: 1. Calculate the allocation ratios for Power and General Factory. (Note: Carry these calculations out to four decimal places.) Allocation ratios for General Factory Power __________________ Battery __________________ Small Motors _________________ Allocation ratios for Power Battery _____________ Small Motors ___________________ 2. Allocate the support service costs to the operating divisions. Round all amounts to the nearest dollar. Use a minus sign to indicate a subtraction. For those boxes in which no entry is required, leave the box blank or enter zero ("0"). Support Departments Power Operating Divisions Battery $ Small Motors $ Direct costs $ $ Allocate: _______ _____ _____ $ $ General Factory Power Total $ 3. Assume divisional overhead rates are based on direct labor hours. Calculate the overhead rate for the Battery Division and for the Small Motors Division. Round overhead rates to the nearest cent. $ Battery overhead rate $ Small Motors overhead rate Overhead Application and Job-Order Costing Heurion Company is a job-order costing firm that uses a plantwide overhead rate based on direct labor hours. Estimated information for the year is as follows: Heurion worked on five jobs in July. Data are as follows: By July 31, Jobs 741 and 743 were completed and sold. The remaining jobs were in process. Required: 1. Calculate the plantwide overhead rate for Heurion Company. Round your answer to the nearest cent. $ per DLH Hide 2. Prepare job-order cost sheets for each job showing all costs through July 31. Round your answers to the nearest dollar, if rounding is required. If an amount box does not require an entry, leave it blank or enter zero ("0"). Heurion Company Job-Order Cost Sheets For the Month of July Job 741 Job 742 Job 743 Job 744 Job 745 Balance, July 1 $ $ $ $ $ $ $ $ $ Direct materials Direct labor Applied overhead Total cost $ 3. Calculate the balance in Work in Process on July 31. $ 4. Calculate Cost of Goods Sold for July. $ 1 Allocation of general factory Power Battery Small motors 0.0351 0.2632 0.7018 Allocation ratio of power Battery Small motors 0.7500 0.2500 2 Allocation of cost Direct cost Allocate General factory Power Total 3 Battery Small motors Power General factory Battery Small motors 160000 430000 163000 84600 15087.7193 175087.719 0 430000 113157.895 301754.386 131315.789 43771.9298 0 407473.684 430126.316 22.6374269 7.16877193 1 Plantwide overhead rate = 7.4675 2 Balance Direct materials Direct labor Applied overhead Total cost 741 29870 25500 61300 29870 146540 WIP 259127 COGS 232355.65 742 55215 39800 48500 25389.5 168904.5 743 27880 14450 28700 14785.65 85815.65 744 0 13600 24500 11948 50048 745 0 8420 21300 10454.5 40174.5 1 Allocation of general factory Power Battery Small motors 0.0351 0.2632 0.7018 Allocation ratio of power Battery Small motors 0.7500 0.2500 2 Allocation of cost Direct cost Allocate General factory Power Total 3 Battery Small motors Power General factory Battery Small motors 160000 430000 163000 84600 15087.7193 175087.719 0 430000 113157.895 301754.386 131315.789 43771.9298 0 407473.684 430126.316 22.6374269 7.16877193 1 Plantwide overhead rate = 7.4675 2 Balance Direct materials Direct labor Applied overhead Total cost 741 29870 25500 61300 29870 146540 WIP 259127 COGS 232355.65 742 55215 39800 48500 25389.5 168904.5 743 27880 14450 28700 14785.65 85815.65 744 0 13600 24500 11948 50048 745 0 8420 21300 10454.5 40174.5
