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please help me find the printing and binding column because im not sure how to do it. thank you! This is really an odd situation,
please help me find the printing and binding column because im not sure how to do it. thank you!
"This is really an odd situation," said Jim Carter, general manager of Highland Publishing Company. "We get most of the jobs we bid on that require a lot of press time in the Printing Department yet profits on those jobs are never as high as they ought to be on the other hand, we lose most of the jobs we bid on that require a lot of time in the Binding Department. I would be inclined to think that the problem is with our overhead rates, but we're already computing separate overhead rates for each department. So what else could be wrong?" Highland Publishing Company is a large organization that offers a variety of printing and binding work. The Printing and Binding departments are supported by three service departments. The costs of these service departments are allocated to other departments in the order listed below. The Personnel cost is allocated based on number of employees. The custodial Services cost is allocated based on square feet of space occupled and the Maintenance cost is allocated based on machine hours Machine Houes Direct Labor Hours Department Personnel Custodial Services Maintenance Printing Birding Total Labor Hours 17,000 8.800 14,400 38,800 107.000 178,00 Square Feet of Space Occupied 12,800 3,700 10,900 40,700 0.900 89,000 Number of Employees 28 47 67 105 306 555 164,000 42.000 206.000 30,000 20.000 19.000 Budgeted overhead costs in each department for the current year are shown below. Koronel Custodiel Services Haintenance Printing Bindine Matul bugeted cost 5330,000 65. 160 93,500 415,000 162.009 $1,050.00 Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments, Required: Using the vep-down method, allocate the service department costs to the consuming departments Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct ubor hours as the allocation base in the Binding Department 2. Repeat above this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments 3. Assume that doring the cutrent year the company bids on a job that requires machine and labor time as follows. Hoching hours Direct boros 1. winni Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the allocation base in the Binding Department 2 Repeat (1) above, this time using the direct method Again compute predetermined overhead rates in the Printing and Binding departments 3. Assume that during the current year the company bids on a job that requires machine and labor time as follows: Ofrect Machine Hours Labor Hours Printing Department 1,400 Binding Departrent 15200 2,400 660 13 BOO Total hours 3000 a. Determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in above. Then determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in (2) above. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 RA Repeat requirement 1 above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departmento. (Please enter allocations from departments negative and allocations to a department politie the line should add across to zero. Do not round Intermediate calculation Round Predetermined overhead rate to decimal places and rest of the answers to the nearest Whofer dollar amount Show less Personel Custodial Services 55100 Maintenance 93.600 Printing 410,000 Binding 162.000 $ 300,000 Odo 83 890 30.102 Departmental cost before locations Alocations Personal Custodio Malta Tocal cool wat Prodotti od vrha KO) 2.800 3011830 400.102 Sie Re) Step by Step Solution
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