Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:Support DepartmentsProducing DepartmentsAssembly Finishing$47,000 $70,0004,6001,35043,000General Factory Receiving$470,000 $190,000Direct overheadSquare footage.Number of receiving orders2,000Direct labor hours.22,000The company has decided to simplify its method of allocating support service costs by switching to the direct method.Allocation ratios:3002,3004,600Required:1. Allocate the costs of the support departments to the producing departments using the direct method. Round allocation ratios to four significantdigits. Round allocated costs to the nearest dollar. Use the rounded values for subsequent calculations. Required:1. Allocate the costs of the support departments to the producing departments using the direct method. Round allocation ratios to four significantdigits. Round allocated costs to the nearest dollar. Use the rounded values for subsequent calculations.Allocation ratios:Square footageNumber of receiving orders.Allocations:General FactoryReceivingDirect costsTotalAssemblyAssemblyFinishingAssembly$FinishingFinishing$2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)Overhead Rateper direct labor hourper direct labor hour

Overheads are all type of indirect costs related with the production and manufacturing of the…

Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments General Factory Receiving Assembly Finishing $470,000 $190,000 $47,000 $70,000 2,300 4,600 1,350 43,000 Direct overhead Square footage 4,600 Number of receiving orders 2,000 Direct labor hours 22,000 The company has decided to simplify its method of allocating support service costs by switching to the direct method. 300 Required: 1. Allocate the costs of the support departments to the producing departments using the direct method. Round allocation ratios to four significar digits. Round allocated costs to the nearest dollar. Use the rounded values for subsequent calculations. Allocation ratiocs

Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments General Factory Receiving Assembly Finishing $470,000 $190,000 $47,000 $70,000 2,300 4,600 1,350 43,000 Direct overhead Square footage 4,600 Number of receiving orders 2,000 Direct labor hours 22,000 The company has decided to simplify its method of allocating support service costs by switching to the direct method. 300 Required: 1. Allocate the costs of the support departments to the producing departments using the direct method. Round allocation ratios to four significar digits. Round allocated costs to the nearest dollar. Use the rounded values for subsequent calculations. Allocation ratiocs

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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