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Please explain how answer is calculated. Thanks in advance. The Tall Top Compary has prepared department overhead budgets for budgeted-volume fovels before alocaticns as foloss:
Please explain how answer is calculated. Thanks in advance.
The Tall Top Compary has prepared department overhead budgets for budgeted-volume fovels before alocaticns as foloss: cick the icon to view the department everthead budgets) Manayernent has decided that the most appropriate inventory costs are achieved by using indlvidual departineot overhoad rates ithese rates are developed ater support-dopartment costs are allocated to operating departments. Bases for allocation are to be selected trom the following (Click the icon to view the data) Resed the cequirements. Using the step-down method, allocate support-departmeet costs Nocate the certs of the support departmonts in the order given in thits problem Round al halrect allocation rales to the nearest cent and all ofer computations to the nearest whole dollar. Use parertheses or a minus shan when decreasha deostinents by alfocaling costs ) Data table Data table Requirements 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. 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 Step by Step Solution
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