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P15-30 (similar to) Question Help The Western Mountain Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: (Click the icon to

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P15-30 (similar to) Question Help The Western Mountain Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: (Click the icon to view the department overhead budgets.) 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 allocated to operating departments. Bases for allocation are to be selected from the following: 2 (Click the icon to view the data.) Read the requirements - X Data Table $ 60,000 100 Support departments: Building and grounds Personnel General plant administration Cafeteria: Operating loss Storeroom Operating departments Machining Assembly Total for support and operating departments 24,010 195 5,330 $ 89,635 $ 34,700 48,900 83,600 $ 173,235 i Data Table x Direct Manufacturing Number of Labor-Hours Employees 0 0 Indirect Manufacturing Labor-Hours 0 Number of Requisitions 0 0 0 0 0 0 35 0 0 Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Machining Assembly Square Feet of Floor Space Occupied 0 6,000 10,500 2,000 1,000 40,000 340,500 400,000 0 10 0 0 5 0 7,000 21,000 28,000 50 100 3,000 3,000 5,000 21,200 32,200 2,500 2,500 5,000 200 Total Basis used is number of employees Requirement 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. Begin by selecting the allocation base for each support department. Support Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Allocation Base Square feet of floor space occupied Number of employees Manufacturing labor-hours Number of employees Number of requisitions Using the step-down method, allocate support-department costs. Allocate the costs of the support departments in the order given in this problem. (Round all indirect allocation rates to the nearest cent and all other computations to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.) Operating Departments Bldg and Grounds 60000 Support Departments General Cafeteria Plant Operating Personnel Admin. Loss 100 24010 195 Storeroom Machining 5330 34700 Assembly 48900 Costs incurred Allocation of costs: (60000) 900 Building and grounds 15751 300 150 6000 51075 Personnel (1000) 175 50 25 250 500 (25760) 2400 General plant administration 2400 4000 16960 (2945) Cafeteria 95 950 1900 (8000) Storeroom 4000 4000 Total budgeted costs of operating departments (49900 (123335)

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