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re-Fabricators Inc manufacturers and assembles prefabricated concrete and green heart homes for the lower to middle income housing market. There are three upport departments and
re-Fabricators Inc manufacturers and assembles prefabricated concrete and green heart homes for the lower to middle income housing market. There are three upport departments and two production departments. The budgeted costs and the normal activity levels for each department are given below. Support Departments Design and Installation Personnel Production Departments Concrete Green Heart Overhead costs $150,000 $1,820,000 Square feet 200 2,400 60,000 72,000 Material costs $45,000 $450,000 $2,000,000 $2,100,000 The allocation bases are as follows: Design and personnel - Number of Employees, and Installation - Material costs. The production department allocates overhead cost to each house based on the budgeted costs for building each house. Required i. Set up algebraic equations in linear equation form for each activity, Determine total costs for each department by solving the equations from part using the reciprocal method
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