Question
SuperReb Company, LLC has two producing departments and three service departments. The following budgeted data pertain to these five departments: Support Departments Producing Departments Maintenance
SuperReb Company, LLC has two producing departments and three service departments. | |||||||
The following budgeted data pertain to these five departments: | |||||||
Support Departments | Producing Departments | ||||||
Maintenance | Purchasing | Personnel | Assembly | Painting | |||
Overhead cost | $650,000 | $550,000 | $450,000 | $150,000 | $125,000 | ||
Square footage | 1250 | 750 | 2500 | 5500 | 7500 | ||
# of employees | 75 | 15 | 10 | 15 | 125 | ||
Purchase orders | 150 | 25 | 75 | 350 | 450 | ||
Direct labor hrs | 30,000 | 65,000 | |||||
Allocate the overhead costs of the support departments to the producing departments using the step (sequential) method. Bases for allocation are: maintenance square footage, purchasing purchase orders, and personnel number of employees. (Round intermediate steps to four decimal places and you final answer to the nearest dollar.) | |||||||
Bases for allocation are: maintenance square footage; purchasing purchase orders; and personnel number of employees. | |||||||
(Round intermediate steps to four decimal places and your final answer to the nearest dollar.) | |||||||
Allocate in the following sequence: 1. Maintenance, 2. Purchasing, 3. Personnel | |||||||
23. Total cost of Assembly (including its own overhead cost) is: ________________ | |||||||
24. Total cost of Painting (including its own overhead cost) is: ________________ |
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