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Profile - Zoom Homepage Inver.... MindTap Google Docs Accounting English A work i Saved This is really an odd situation, said Jim Carter, general

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Profile - Zoom Homepage Inver.... MindTap Google Docs Accounting English A work i Saved "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 occupied and the Maintenance cost is allocated based on machine-hours. Total Labor- Department Personnel Hours 16,300 Square Feet of Space Occupied Number of Employees Direct Labor- Machine-Hours Hours 12,600 25 Custodial Services 8,200 3,700 44 Maintenance 14,100 10,700 61 Printing 30,100 40,200 103 163,000 11,000 Binding 104,000 20,200 307 46,000 76,000 172,700 87,400 540 209,000 87,000 Budgeted overhead costs in each department for the current year are shown below: Personnel Custodial Services Maintenance ...pdf 320,000 65,800 93,400 < Prev 5 of 5 Next >

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