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E11-5 Departmental Distribution of Estimated Overhead-Step Method; Rate Calculation. The Garrett Mixing Company has two producing departments, Mixing and Finishing, and two service departments, Cafeteria and Product Design. The company assigns ser- vice department costs to other service departments; however, after a department's costs have been distributed, no costs are assigned back to it. Cafeteria is distributed first, based on the number of employees, and Product Design is distributed based on the number of product orders. In calculating predetermined overhead rates, machine hours are used as the basis in both producing departments. The following estimated data are provided: Budgeted overhead.. Number of employees. Number of product orders. Machine hours... Cafeteria $10,000 10 Product Design $50,000 5 Mixing $100,000 65 100 40,000 Finishing $200,000 130 200 60,000 Required: Develop predetermined overhead rates for the Mixing and Finishing departments,

E11-5 Departmental Distribution of Estimated Overhead-Step Method; Rate Calculation. The Garrett Mixing Company has two producing departments, Mixing and Finishing, and two service departments, Cafeteria and Product Design. The company assigns ser- vice department costs to other service departments; however, after a department's costs have been distributed, no costs are assigned back to it. Cafeteria is distributed first, based on the number of employees, and Product Design is distributed based on the number of product orders. In calculating predetermined overhead rates, machine hours are used as the basis in both producing departments. The following estimated data are provided: Budgeted overhead.. Number of employees. Number of product orders. Machine hours... Cafeteria $10,000 10 Product Design $50,000 5 Mixing $100,000 65 100 40,000 Finishing $200,000 130 200 60,000 Required: Develop predetermined overhead rates for the Mixing and Finishing departments,

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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E11-5 Departmental Distribution of Estimated Overhead-Step Method; Rate Calculation. The Garrett Mixing Company has two producing departments, Mixing and Finishing, and two service departments, Cafeteria and Product Design. The company assigns ser- vice department costs to other service departments; however, after a department's costs have been distributed, no costs are assigned back to it. Cafeteria is distributed first, based on the number of employees, and Product Design is distributed based on the number of product orders. In calculating predetermined overhead rates, machine hours are used as the basis in both producing departments. The following estimated data are provided: Budgeted overhead. Number of employees Number of product orders. Machine hours.... Cafeteria $10,000 10 Product Design $50,000 5 Mixing $100,000 65 100 40,000 Finishing $200,000 130 200 60,000 Required: Develop predetermined overhead rates for the Mixing and Finishing departments.
Transcribed Image Text:E11-5 Departmental Distribution of Estimated Overhead-Step Method; Rate Calculation. The Garrett Mixing Company has two producing departments, Mixing and Finishing, and two service departments, Cafeteria and Product Design. The company assigns ser- vice department costs to other service departments; however, after a department's costs have been distributed, no costs are assigned back to it. Cafeteria is distributed first, based on the number of employees, and Product Design is distributed based on the number of product orders. In calculating predetermined overhead rates, machine hours are used as the basis in both producing departments. The following estimated data are provided: Budgeted overhead. Number of employees Number of product orders. Machine hours.... Cafeteria $10,000 10 Product Design $50,000 5 Mixing $100,000 65 100 40,000 Finishing $200,000 130 200 60,000 Required: Develop predetermined overhead rates for the Mixing and Finishing departments.
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