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Suppose you get this information that related to Nevada, and as CFO, you must calculate the overhead cost based on these workflows: Maintenance Cutting
Suppose you get this information that related to Nevada, and as CFO, you must calculate the overhead cost based on these workflows: Maintenance Cutting Cafeteria Labelling Product Design Marketing Office Administration The cutting and labeling department can't be operated without support from the maintenance and cafeteria division. Also, the product changes will affect and support all the related producing division and office support division. Additional Information: 1. The total overhead for the maintenance department is $40,000 with the support percentage: 50% for the cutting department, 20% for the labeling department, 20% for a cafeteria, and the product design department. 2. The total overhead for the cafeteria department is $40,000 with the support percentage: 40% for the cutting department, 30 % for the labeling department, 20% for maintenance, and the rest is for the Product design department. 3. The total overhead for the cafeteria department is $20,000 with the support percentage: 10% for the cutting department, 60 % for the labeling department, and the rest percentage, half for the marketing division and a half for the office administration division. 4. The total overhead cost for the cutting department: $100,000 and $50,000 for the labeling department. Required: a. Explain about the departments in Nevada based on the data above! (hint: there must be one department that produces the product) (5 points) b. Compute the overhead cost for each department! (hint: you must know the allocation method first) (10 points)
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Computation of cost per unit under original system Job B 100640 Job A 195700 Direct material cost Di...Get Instant Access to Expert-Tailored Solutions
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