1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".) Allocation ratios: Square footage Number of receiving orders Allocations: Total General Factory Direct overhead cost $500,000 General Factory Receiving Assembly Finishing 0 General Factory 0 0.1 ✓ X Receiving Overhead Rate 0.2 0 Receiving $170,000✔ 0 X per direct labor hour X per direct labor hour X Assembly 0.4 0.56 ✔ Assembly 45,000 ✔ Finishing 0.4 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.) 0.34 Finishing 71,000 ✓
1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".) Allocation ratios: Square footage Number of receiving orders Allocations: Total General Factory Direct overhead cost $500,000 General Factory Receiving Assembly Finishing 0 General Factory 0 0.1 ✓ X Receiving Overhead Rate 0.2 0 Receiving $170,000✔ 0 X per direct labor hour X per direct labor hour X Assembly 0.4 0.56 ✔ Assembly 45,000 ✔ Finishing 0.4 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.) 0.34 Finishing 71,000 ✓
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Direct overhead
Square footage
Number of receiving orders
Direct labor hours
Required:
Allocation ratios:
Square footage
Number of receiving orders
Allocations:
Total
Support Departments
General Factory
Assembly
Finishing
$500,000
1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method.
(Round allocation ratios to two decimal places. Round allocated costs to the nearest dollar. If an amount is
zero, enter "0".)
General Factory
Direct overhead cost $500,000 ✓
General Factory
Receiving
0
0.1
General Factory
300
X
Overhead Rate
Receiving
$170,000
Receiving
170,000
Receiving
0
0.2
2,700
0
X per direct labor hour
X per direct labor hour
Producing Departments
Assembly Finishing
$45,000
$71,000
5,400
5,400
1,020
40,000
X
1,680
25,000
Assembly
0.4
0.56
Assembly
45,000 ✓
Finishing
0.4
2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)
0.34
Finishing
71,000
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