Suppose you get these information that related to Snowy Corp. and as CFO, you must calculate the overhead cost based on these workflow: the maintenance department receives support from cafeteria department but cafeteria maintain their tools by themselves.The molding and painting department cant be operated without support from maintenance and cafeteria division. Additional Information:

a. The total overhead for maintenance department is $40,000 with the support percentage: 60% for molding department and the rest 20% for painting department.

b. The total overhead for cafeteria department is $60,000 with the support percentage: 30% for molding department, 40% for painting department, and 30% for maintenance.

c. The total overhead cost for molding department: $250,000 and $100,000 for painting department

Required:

Compute the overhead cost for each department and explain your answer! (hint: you must know the allocation method first)

Question

Suppose you get these information that related to Snowy Corp. and as CFO, you must calculate the overhead cost based on these workflow: the maintenance department receives support from cafeteria department but cafeteria maintain their tools by themselves.The molding and painting department cant be operated without support from maintenance and cafeteria division. Additional Information:

a. The total overhead for maintenance department is $40,000 with the support percentage: 60% for molding department and the rest 20% for painting department.

b. The total overhead for cafeteria department is $60,000 with the support percentage: 30% for molding department, 40% for painting department, and 30% for maintenance.

c. The total overhead cost for molding department: $250,000 and $100,000 for painting department

Required:

Compute the overhead cost for each department and explain your answer! (hint: you must know the allocation method first)

Accepted Answer

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Question

Suppose you get these information that related to Snowy Corp. and as CFO, you must calculate the overhead cost based on these workflow: the maintenance

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