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Information IT support costs are allocated to productive departments based on time of service while Rep&Maint costs are allocated based on hours. Department IT support
Information IT support costs are allocated to productive departments based on time of service while Rep&Maint costs are allocated based on hours. Department IT support Rep&Maint Cutting Welding Total Departmental overhead $500,000 $1,000,000 $6,000,000 $2,500,000 $10,000,000 IT Time of service 50 40 600 360 1050 R&M hours 500 400 24,000 16,000 40,900 Cutting uses machine hours as a base for overhead allocation and expects to use 90,000 MH this year. Welding uses direct labor hours as a base for overhead allocation and expects to use 70,000 DLH this year. During the year, Job 70B is completed. The job required: Cutting Welding DLH 100 300 MH 350 120 Required: Part 1. a. Complete a 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
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Step Method Service Department 1a Productive Department Repairs IT Cutting Welding 500000 Main...Get Instant Access to Expert-Tailored Solutions
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