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I need help with these question Please This is really an odd situation, said Jim Carter, general manager of Highland Publishing Company. We get most

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I need help with these question Please

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This is really an odd situation," said Jim Carter, general manager of Highland Publishing Company. \"We get most of the jobs we bid on that require a lot of press time in the Printing Department, yet profits on those jobs are never as high as they ought to be. On the other hand, we lose most of the jobs we bid on that require a lot of time in the Binding Department. I would be inclined to think that the problem is with our overhead rates, but we're already computing separate overhead rates for each department. So what else could be wrong?\" Highland Publishing Company is a large organization that offers a variety of printing and binding work. The Printing and Binding departments are supported by three service departments. The costs of these service departments are allocated to other departments in the order listed below (For each service department, use the allocation base that provides the best measure of service provided, as discussed in the chapter.) Square Feet Direct Total of Space Number of Machine- Labor- Department LaborHours Occupied Employees Hours Hours Personnel 20,000 4,000 10 Custodial Services 30,000 6,000 15 Maintenance 50000 20,000 25 Printing 90,000 80,000 40 150,000 60,000 Binding 260,000 40,000 120 30,000 175,000 450,000 150,000 210 18.1000 235,000 Budgeted overhead costs in each department for the current year are shown below: Personnel $ 350,000 Custodial Services 141,000 Maintenance 201,000 Printing 525,000 Binding 319,500 Total budgeted cost $1,500,500 Because of its simplicity, the company has always used the direct method to allocate senrice department costs to the two operating departments. Required: 1. Using the stepdown method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates for the current year using machine-hours as the allocation base in the Printing Department and direct labor hours as the allocation base in the Binding Department. [Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Total cost before allocations Allocation: Personnel Custodial services Mainte nanoe Total overhead cost after allocations 141,000 201,000 525,000 3?3,000 Divide by machinehours Divide by direct laborhours Predetermined overhead rate 2. Repeat {1] above, this time using the direct method. Again compute predetermined overhead rates in the the Printing and Binding departments- [Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Total cost before allocations $ 360,000 $ 141,000 $ 201,000 $ 525,000 $ 933,500 360,000 141,000 201,000 525,000 33,500 Allocation: Personnel Custodial services Maintenanoe Total overhead cost after allocations Divide by machine-hours Divide by direct laborhours Predetermined overhead rate 3. Assume that during the current year the companyr bids on ajop that requires machine and labor time as follows: Direct Machine Labor Hours Hours Printing Department 15,400 900 Binding Department 800 2,000 Total hours 16,200 2,900 a. Determine the amount of overhead that would be assigned to the job if the company uses the overhead rates developed in {1} stepdown method and [2) direct method- [Rou nd your answers to the nearest dollar amou nt.) Stem mm

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