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I only need help with #2-4. Thank you! The Norther Plain Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: (Click
I only need help with #2-4. Thank you!
The Norther Plain Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: (Click the icon to view the department overhead budgets.) Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following: (Click the icon to view the data.) Read the requirements. --- Data table $ Support departments: Building and grounds Personnel General plant administration Cafeteria: Operating loss Storeroom Operating departments: Machining 8,000 2,760 29,320 2,870 14,988 $ 57,938 $ 36,600 52,400 Assembly 89,000 $ 146,938 Total for support and operating departments Print Done Data table Square Feet of Direct Floor Indirect Manufacturing Number of Space Manufacturing Number of Labor-Hours Employees Occupied Labor-Hours Requisitions 0 0 0 0 0 0 0 3,000 0 0 0 60 18,000 0 0 Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Machining Assembly 0 30 0 0 12 0 6,000 2,400 60,000 10,600 2,000 3,000 8,000 26,200 120 7,000 21,000 7,000 3,000 78 Requirements 1. Using the step-down method, allocate support-department costs. Develop overhead rates per direct manufacturing Tabor bourser machining and assembly. Allocate the costs of the support departments in the order given in this problem. Use the allecation base for each support department you think is most appropriate 2. Using the direct method, rework requirement 1. 3. Based on the following information about two jobs, determine the total overhead costs for each job by using rates developed in (a) requirement 1 and (b) requirement 2. Direct Manufacturing Labor-Hours Machining Assembly Job 88 24 1 Job 89 4 17 4. The company evaluates the performance of the operating department managers on the basis of how well they managed their total costs, including allocated costs. As the manager of the Machining Department, which allocation method would you prefer from the results obtained in requirements 1 and 2? Explain. Print Done Support Departments Operating Departments General Cafeteria Bldg and Plant Operating Grounds Personnel Admin. Loss Storeroom Machining Assembly Costs incurred Allocation of costs: Building and grounds Personnel General plant administration Cafeteria Storeroom Total budgeted costs of operating departmentsStep by Step Solution
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