P15-30 (sima ) The Down Dash Company has prepared department overhead budget for budgeted volume levels before allocations as follows: Cho the boon to view the department overhead budges) 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 allowed to operating departments Bases for location are to be selected from the following: o the con lo vw the data) Read the grements Requirement 1. Using the step down method, alocate support department costs. Develop overhead as per direct manufacturing labor hour for machining and assembly. Allocate the costs of the support departments in the order given in this problem. Use the allocation base for each support department you think is most appropriate Begin by selecting the location base for each support department Support Department Allocation Base Buding and grounds Personnel General plantadi on Cafeteria operating to Storeroom bped after support-de d department overhead budgets for budgeted-volume levels before allocations as follows: overhead budgets.) propriate inventory cod Data Table selected from the follo $ 18,000 ining and assembly od, allocate support de m. Use the allocation ch support departme Support departments: Building and grounds Personnel General plant administration Cafeteria: Operating loss 320 44,480 995 9,675 $ Allocation Base 73,470 Storeroom Operating departments: $ Machining 36,600 48,900 85,500 Assembly $ 158,970 Total for support and operating departments Print Print Done Done click Check Answer. Clear All department overhead budgets for budgeted-volume levels before anuals a5 IU i Data Table Direct Manufacturing Labor-Hours Number of Employees Square Feet of Floor Space Occupied Indirect Manufacturing Labor-Hours Number of Requisitions Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Machining 6,000 8,000 1,000 6,000 30,000 49,000 2,000 1,000 10,000 29,000 7,000 21,000 6,000 4,000 Assembly 90 28,000 100,000 42,000 10,000 Total "Basis used is number of employees Print Print [Done] Done Clear All nd budgets. after suppa inventory d from the 1. Using the step-down method, allocate support-department costs. Develop overhead rates per direct manufacturing labor-hour for machining and assembly. Allocate the costs of the support departments in the order given in this problem. Use the allocation 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. g and asser ate suppo the alloca ort depart cation B) Direct Manufacturing Labor-Hours Machining Assembly Job 88 23 Job 89 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. neck Ang Print Done Clear All