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Stubing Company has two producing departments and two support centers. The following budgeted data pertain to these four departments: Support Departments Producing Departments Maintenance Personnel
Stubing Company has two producing departments and two support centers. The following budgeted data pertain to these four departments: Support Departments Producing Departments Maintenance Personnel Assembly Painting Overhead $200,000 $60,000 $43,000 Square footage 2,700 5,400 Number of employees 30 72 Direct labor hours 25,000 $74,000 5,400 198 40,000 3. Allocate the overhead cost of the support departments to the production department using the step method. 4. Using direct labour hours, compute departmental overhead rates. 5. Allocate the overhead cost of the support departments to the production department using the reciprocal method. 6. Using direct labour hours, compute departmental overhead rates
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