Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The company does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are

image text in transcribed

The company does not divide costs into fixed and variable components. 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.)

Refer to Figure 4. The amount of maintenance costs allocated to the Assembly Department using the direct method would be

None of these are correct

$57,600 $192,000 $152,640

$115,200

Refer to Figure 4. If the direct method is used to allocate support-department costs, the predetermined overhead rate for the Fabrication Department would be (round to two decimal places)

None of these are correct

$24.78 $7.28 $5.40

$28.80

Refer to Figure 4. If the sequential or step method is used to allocate support-department costs starting with personnel, the amount of personnel costs allocated to the Fabrication Department would be

$63,333 $53,333 None of these are correct

$60,000 $52,400

Figure 4 Support Departments Personnel Maintenance Producing Departments Fabrication Assembly $560,000 $640,000 $160,000 $288,000 Budgeted overhead Direct labor hours 8,000 Machine hours 12,000 Number of employees 10,000 15,000 20 32,000 48,000 60 40,000 32,000 100 16

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Process Principles Practice And Cases

Authors: Iain Gray, Stuart Manson,

4th ISA Edition

1844806782, 9781844806782

More Books

Students also viewed these Accounting questions

Question

2. What are the components of IT infrastructure?

Answered: 1 week ago