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. Please show work
Allocate in the following sequence: 1. Maintenance, 2. Purchasing, 3. Personnel
1. Total cost of Assembly (including its own overhead cost) is: ________________
2. Total cost of Painting (including its own overhead cost) is: ________________
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