Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

OO AT&T 6 Indirect Cost Allocation: Direct Method Sprint Manufacturing Company has two production departments, Melting and Molding, Direct general plant management and plant security

image text in transcribed
image text in transcribed
OO AT&T 6 Indirect Cost Allocation: Direct Method Sprint Manufacturing Company has two production departments, Melting and Molding, Direct general plant management and plant security costs benefit both production departments. Sprint allocates general plant management costs on the basis of the number of production employees and plant security costs on the basis of space occupied by the production departments. In November, the following overhead costs were recorded: Melting Department direct S180,000 overhead Molding Department direct 400.000 overhead General plant management 100.000 Plant security 35,000 other pertinent data follow: Melting Molding Number of employees 30 55 Space occupied square 10,000 30,000 feet) Machine hours 10,000 2,000 Direct labor hours 4.000 20.000 (a) Prepare a schedule allocating general plant management costs and plant security costs to the Melting and Molding Department Total Department Melting, Molding General Plant Management Plant security (b) Determi ine the total departmental overhead costs for the Melting and Molding Departments. Melting Molding (c) Assuming the Melting Department uses machine hours and the Molding Department uses direct labor hours to apply overhead to production, calculate the overhead rate for each production department. (Round your answers to two decimal places.) Melting

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Alternative Minimum Tax For Individuals IRS Audit Technique Guide ATG

Authors: Internal Revenue Service

1st Edition

1304131556, 978-1304131553

More Books

Students also viewed these Accounting questions