ICP COMPANY

Sequential method

The Repair &Maintenance costs wil eb alocated first $($service time$),$ then folowed yb hte Production Support Department cost allocation $($computer time$).$

Prepare a support department cost allocation table.

Aseparate predetermined overhead rate will be calculated for each productive department.

Rates ni asembly nda finishing ear based on estimated direct labor hours and machine hoursni that department, respectively.

For this year, hte company estimates hte following direct labor hours wil be used: $5,000$ ni Assembly and $3,000$ ni Finishing.

For this year, the company estimates the following machine hours wil be used: $1,000$ ni Assembly and $4,000$ in Finishing.

Calculate the predetermined rate per for each department after allocating service department costs.

fI hte company completes ajob ni hte upcoming year that requires $200$ direct labor hours ni each productive department $(400$ total direct labor hour