The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for the coming year:
Check my work Factory Administration Custodial Services Personnel Maintenance Machining-overhead Assembly-overhead Total cost $ 640,680 103,274 31,056 148,590 1,391,860 510,140 $2,825,600 The company allocates service department costs to other departments in the order listed below Square Total Feet of Direct Number of Labor Space Labor- Machine- Employees Hours occupied Hours Hours Department Factory Administration Custodial Services Personnel Maintenance Machining Assembly 32 13 13 52 60 90 260 5,700 9,700 3,600 14,600 8,100 52,900 14,100 65,000 50,000 49,000 200,000 195, 000 20,000 224,000 40,000 337,200 101,500 273,000 240,000 Machining and Assembly are operating departments; the other departments are service departments. Factory Administration is allocated based on labor-hours; Custodial Services based on square feet occupied; Personnel based on number of employees, and Maintenance based on machine-hours Required: 1. Allocate service department costs to consuming departments by the step-down method. Then compute predetermined overhead rates in the operating departments using machine-hours as the allocation base in Machining and direct labor-hours as the allocation base in Assembly 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in Machining and Assembly. 3. Assume that the company doesn't bother with allocating service department costs but simply computes a single plantwide overhead rate that divides the total overhead costs (both service department and operating department costs) by the total direct labor-hours. Compute the plantwide overhead rate 4. Suppose a job requires machine and labor time as follows: Direct Machine-Labor- Hours 27 70 97 Hours 195 Machining Department Assembly Department Total hours 206 Using the overhead rates computed in (1), (2), and (3) above, compute the amount of overhead cost that would be assigned to the job if the overhead rates were developed using the step-down method, the direct method, and the plantwide method Complete this question by entering your answers in the tabs below Required1Required 2 Required 3 Required 4 Allocate service department costs to consuming departments by the step-down method. Then compute predetermined overhead rates departments using machine-hours as the allocation base in Machining and direct labor-hours as the allocation base in Assembly. (Plea allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not rou calculations. Round "Predetermined overhead rates" to 2 decimal places and other final answers to the nearest whole dollar amount.) Custodial Administration Services Factory Personnel Maintenance Machining Assembly Departmental costs before allocation640,680 $ 103,274 S 31,056148,590 Allocations Factory administration Custodial services Personnel Maintenance Total costs after allocation $ 640,680$ 103,274 S31,056148,590 $ 0 Predetermined overhead rate Direct Machine- Labor- Hours 195 Machining Department Assembly Department Total hours Hours 27 70 97 206 Using the overhead rates computed in (1), (2), and (3) above, compute the amount of overhead cost that would be assigned to the job if the overhead rates were developed using the step-down method, the direct method, and the plantwide method Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Repeat requirement 1 above, this time using the direct method. Again compute predetermined overhead rates in Machining and Asse enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do n intermediate calculations. Round "Predetermined overhead rates" to 2 decimal places and other final answers to the nearest whole do Factory Custodial Administration Services Personnel Maintenance Machining Assembly Departmental costs before allocation$640,680 $103,274 $31,056 148,590 Allocations Factory administration Custodial services Personnel Maintenance Total costs after allocation $ 640,680$ 103,274 31,056148,590$ Predetermined overhead rate Required 1 Required 3> Using the overhead rates computed in (1), (2), and (3) above, compute the amount of overhead cost that would be assigned to the job if the overhead rates were developed using the step-down method, the direct method, and the plantwide method Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3Required 4 Assume that the company doesn't bother with allocating service department costs but simply computes a single plantwide overhead rate that divides the total overhead costs (both service department and operating department costs) by the total direct labor-hours. Compute the plantwide overhead rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Plantwide overhead rate per DLH Required 1Required 2 Required 3Required 4 Using the overhead rates computed in (1), (2), and (3) above, Compute the amount of overhead cost that would be assigned to the job if the overhead rates were developed using the step-down method, the direct method, and the plantwide method. (Do not round intermediate calculations. Round "Predetermined overhead rates" to 2 decimal places and other final answers to the nearest whole dollar amount.) Show lessA Overhead Cost Step-down method Direct method Plantwide method
