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please solve the question in attached file partments and three service departments. The estimated annual overhead for these seven depart ments is as follows: Total
please solve the question in attached file
partments and three service departments. The estimated annual overhead for these seven depart ments is as follows: Total rale basis PRODUCING DEPARTMENTS SERVICE DEPARTMENTS ESTIMATED Main- Tool Store EXPENSES 02 01 03 04 tenance room room Fixed factory overhead $36,000 48,000 $45.000 $30,000 $15,000 510,500 512.000 Variable factory overhead.... 24,000 22.000 20,000 20,000 10.800 10.500 3.000 $60,000 $70,000 $65.000 550.000 $25,800 $21,000 $15.000 Management decided to distribute the service department costs on a dual basis: (a) fixed overhead on a standby or ready-to-serve basis and (b) variable overhead on a billing or charging The fixed overhead of the three service departments is to be distributed as follows: SERVICE DEPARTMENTS TOTAL 01 02 03 04 Maintenance $15,000 $5,000 $4,000 $3,000 $3.000 Toolroom 10.500 3,500 2,500 2.500 2.000 Storeroom 12.000 6,000 3,000 2.000 1,000 The variable overhead of the service departments is distributed on the basis of the following data STOREROOM MAINTENANCE TOOLROOM (NUMBER OF (AREA IN (NUMBER OF MATERIALS DEPARTMENT SQUARE FEET) EMPLOYEES) REQUISITION) No. 01 12.000 50 30,000 No. 02 10,000 40 30,000 No. 03 9.000 30 28.000 No. 04 5.000 30 12,000 Maintenance 5.000 10 Toolroom 3.000 5 Storeroom 1.000 No service department's cost is to be prorated to other service departments. Required: (1) A factory overhead distribution sheet on the basis of the data and instructions given (2) Factory overhead rates for the four producing departments, based on the following prede. termined machine hours, direct labor hours, and direct labor cost DEPARTMENT NO. 01 33,000 machine hours 02 32,000 machine hours 03 39,070 direct labor hours 04 $59,960 labor costStep by Step Solution
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