Question
Support Departments Producing Departments Personnel Maintenance Fabrication Assembly Budgeted overhead $160,000 $288,000 $560,000 $640,000 Direct labor hours 8,000 10,000 32,000 40,000 Machine hours 12,000 15,000
| Support Departments | Producing Departments | |||
| Personnel | Maintenance | Fabrication | Assembly | |
| Budgeted overhead | $160,000 | $288,000 | $560,000 | $640,000 |
| Direct labor hours | 8,000 | 10,000 | 32,000 | 40,000 |
| Machine hours | 12,000 | 15,000 | 48,000 | 32,000 |
| Number of employees | 16 | 20 | 60 | 100 |
Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labor hours. (Round to the nearest dollar.)
The amount of maintenance costs allocated to the Assembly Department using the direct method would be
| a. | $115,200 |
| b. | $192,000 |
| c. | $57,600 |
| d. | $152,640 |
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Financial And Managerial Accounting
Authors: John J. Wild
9th Edition
1260728773, 9781260728774
