A company with two producing departments and two support departments has the following data: Support Departments Producing Departments General Factory Purchasing Power Pesticide Liquid Fertilizer Direct overhead $250,000 $125,000 $70,000 $80,000 $105,000 Square footage 1,600 1,800 3,900 5,450 Machine hours 1,400 1,500 30,000 10,000 Purchase orders 100 5 15 250 125 Use the direct method to allocate the support department costs to the producing departments. (Round allocation percentages to 4 significant digits) Round final answers to nearest dollar except predetermined overhead rates to the nearest cent General factory to Pesticide and Fertilizer, respectively (nearest dollar) Purchasing to Pesticide and Fertilizer, respectively (nearest dollar) Power to Pesticide and Fertilizer, respectively (nearest dollar) using machine hours, compute the departmental predetermined overhead rates for Pesticide and Fertilizer, respectively (nearest cent) 1. General: ____________and _______________ 2. Purchasing: _______________and __________ 3. Power: _____________and _______________ 4. ________________per machine hour and _____________per machine hour respectively
A company with two producing departments and two support departments has the following data: Support Departments Producing Departments General Factory Purchasing Power Pesticide Liquid Fertilizer Direct overhead $250,000 $125,000 $70,000 $80,000 $105,000 Square footage 1,600 1,800 3,900 5,450 Machine hours 1,400 1,500 30,000 10,000 Purchase orders 100 5 15 250 125 Use the direct method to allocate the support department costs to the producing departments. (Round allocation percentages to 4 significant digits) Round final answers to nearest dollar except predetermined overhead rates to the nearest cent General factory to Pesticide and Fertilizer, respectively (nearest dollar) Purchasing to Pesticide and Fertilizer, respectively (nearest dollar) Power to Pesticide and Fertilizer, respectively (nearest dollar) using machine hours, compute the departmental predetermined overhead rates for Pesticide and Fertilizer, respectively (nearest cent) 1. General: ____________and _______________ 2. Purchasing: _______________and __________ 3. Power: _____________and _______________ 4. ________________per machine hour and _____________per machine hour respectively
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company with two producing departments and two support departments has the following data:
| Support Departments | Producing Departments | ||||
| General Factory | Purchasing | Power | Pesticide | Liquid Fertilizer | |
| Direct |
$250,000 | $125,000 | $70,000 | $80,000 | $105,000 |
| Square footage | 1,600 | 1,800 | 3,900 | 5,450 | |
| Machine hours | 1,400 | 1,500 | 30,000 | 10,000 | |
| Purchase orders | 100 | 5 | 15 | 250 | 125 |
Use the direct method to allocate the support department costs to the producing departments. (Round allocation percentages to 4 significant digits) Round final answers to nearest dollar except predetermined overhead rates to the nearest cent
- General factory to Pesticide and Fertilizer, respectively (nearest dollar)
- Purchasing to Pesticide and Fertilizer, respectively (nearest dollar)
- Power to Pesticide and Fertilizer, respectively (nearest dollar)
- using machine hours, compute the departmental predetermined overhead rates for Pesticide and Fertilizer, respectively (nearest cent)
1. General: ____________and _______________
2. Purchasing: _______________and __________
3. Power: _____________and _______________
4. ________________per machine hour and _____________per machine hour respectively
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