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Reciprocal Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments

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Reciprocal Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments General Factory Receiving Assembly Finishing Direct overhead $500,000 $170,000 $45,000 $75,000 Square footage 2,700 5,400 5,400 306 Number of receiving orders 1,020 1,680 25 000 40,000 Direct labor hours Required: 1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".) Allocation ratios. General Factory Receiving Assembly Finishing 0.2 0 Square footage 0.4 0.4 0.1 0 0.56 Number of receiving orders 0.34 7 Allocations: General Factory Receiving Assembly Finishing Direct overhead cost 500,000 170,000 $ 42,000 X 75,000 V 211,020 General Factory 527,551 105,510 x 27,551 Receiving -275,510 154,286 V 93,693 x 0 0 $ Total 407,307 X $ 379,693 v 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.) Overhead Rate Assembly 16.29 X per direct labor hour Finishing $ 9.49 per direct labor hour

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