Question
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
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 16Step by Step Solution
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