KENTUCKY CORPORATION manufacturing overhead costs on the most appropriate cesr diriver Prior to the start of the year, the following information is BUDGETED for the company's two support departments and heir two managers of the Assembly and Finishing Departments controlled their costs The company uses a single-rate allocation system and, accordingly. makes NO ATTEMPT to separately allocate the fxed and variable support department costs (duel rate). The company breaks the overhead cost pool into two separate pools. The first is Receiving, which consists of all the costs related to receiving, Inspecting, sorting, moving and stocking of various materials and parts. The company has dentified all of the activities that relate to this function, and the amount of costs related to each and allocates that cost pool based on the number of receiving orders (called "receivers). All of the other indirect manufacturing costs not directly traceable to an individual producing department are gathered in another cost pool called "General Factory General Factory, therefore, is considered to be providing more services to the Receiving Department than the other way around. General Factory costs are allocated on the basis of square feet Reguired: 1. What are general reasons for allocating the costs of services within an organization? List 4 and BRIEFLY mention why each is important 2 Assume that, prior to the start of the year, we need to determine the predetermined overhead application rates for Assembly and Finishing for the upcoming year, that is, we are doing product costing. The tollowing budgeted information is available: General Direct overhead Square footage Number of receiving orders $400,000 $160,000 2,700 $ 43,000 74,000 5,400 5,400 1,680 1,020 25,000 40,000 Direct labor hours Using the Direct Method: a) What's the charge rate going to be for both General Factory and Receiving functions? Allocate the costs of the General Factory and Receiving to the production departments b) c) Determine the predetermined overhead-application rates that the Assembly and Finishing department will use for product costing during the year. Round any intermediate calculations to 4 decimal places and use those rounded numbers in subsequent computations. Round your final departmental allocations to the nearest dollar. Using the Step (or Sequential Method a) b) c) to determine the overhead-application rates that the Assembly and Finishing department will use for product What's the charge rate'going to be for both General Factory and Receiving functions? Allocate the costs of the General Factory and Receiving to the production departments costing during the year. Round any intermediate calculations to 4 decimal places and use those rounded numbers in subsequent computations. Round your final departmental llocations to the nearest dollar KENTUCKY CORPORATION manufacturing overhead costs on the most appropriate cesr diriver Prior to the start of the year, the following information is BUDGETED for the company's two support departments and heir two managers of the Assembly and Finishing Departments controlled their costs The company uses a single-rate allocation system and, accordingly. makes NO ATTEMPT to separately allocate the fxed and variable support department costs (duel rate). The company breaks the overhead cost pool into two separate pools. The first is Receiving, which consists of all the costs related to receiving, Inspecting, sorting, moving and stocking of various materials and parts. The company has dentified all of the activities that relate to this function, and the amount of costs related to each and allocates that cost pool based on the number of receiving orders (called "receivers). All of the other indirect manufacturing costs not directly traceable to an individual producing department are gathered in another cost pool called "General Factory General Factory, therefore, is considered to be providing more services to the Receiving Department than the other way around. General Factory costs are allocated on the basis of square feet Reguired: 1. What are general reasons for allocating the costs of services within an organization? List 4 and BRIEFLY mention why each is important 2 Assume that, prior to the start of the year, we need to determine the predetermined overhead application rates for Assembly and Finishing for the upcoming year, that is, we are doing product costing. The tollowing budgeted information is available: General Direct overhead Square footage Number of receiving orders $400,000 $160,000 2,700 $ 43,000 74,000 5,400 5,400 1,680 1,020 25,000 40,000 Direct labor hours Using the Direct Method: a) What's the charge rate going to be for both General Factory and Receiving functions? Allocate the costs of the General Factory and Receiving to the production departments b) c) Determine the predetermined overhead-application rates that the Assembly and Finishing department will use for product costing during the year. Round any intermediate calculations to 4 decimal places and use those rounded numbers in subsequent computations. Round your final departmental allocations to the nearest dollar. Using the Step (or Sequential Method a) b) c) to determine the overhead-application rates that the Assembly and Finishing department will use for product What's the charge rate'going to be for both General Factory and Receiving functions? Allocate the costs of the General Factory and Receiving to the production departments costing during the year. Round any intermediate calculations to 4 decimal places and use those rounded numbers in subsequent computations. Round your final departmental llocations to the nearest dollar