Support Departments General Factory Receiving Assembly Finishing merhead $400,000 $170,000 $45,000 $75,000 5,400 5,400 ootage 2,700 of 1,680 1,020 orders bor 300 ootage of orders d: te the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated cos on ratios: Producing Departments 0✓ General Receiving Assembly Finishing Factory 0.1 ✔ 25,000 40,000 0.2✔ 0.4 ✓ 0.4 0✓ 0.56 ✔ 0.34
Support Departments General Factory Receiving Assembly Finishing merhead $400,000 $170,000 $45,000 $75,000 5,400 5,400 ootage 2,700 of 1,680 1,020 orders bor 300 ootage of orders d: te the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated cos on ratios: Producing Departments 0✓ General Receiving Assembly Finishing Factory 0.1 ✔ 25,000 40,000 0.2✔ 0.4 ✓ 0.4 0✓ 0.56 ✔ 0.34
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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Answer complete question with workings, please answer in text form
![Reciprocal Method
Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:
Producing
Departments
Direct overhead
Square footage
Number of
receiving orders
Direct labor
hours
Required:
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:
Direct
overhead.
cost
General
Factory
Receiving
Total
Support Departments
General
Factory Receiving Assembly Finishing
$400,000 $170,000 $45,000 $75,000
5,400 5,400
2,700
1,680. 1,020
Assembly
Finishing
300
General
Factory
General
Factory
0✔
0.1 ✓
-425,5✔
25,51 ✔
$400,0✓ 170,0 $45,00 ✓
0 $
Receiving Assembly Finishing
0.2 ✓ 0.4 ✓ 0.4✔
0 0.56✔ 0.34 ✔
Receiving Assembly Finishing
85,10 ✔
-255,1✔
0
25,000
14 x per direct.
labor hour
40,000
$
per direct labor
hour
2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)
Overhead Rate
75,00✔
160,0 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d8319dd-bfcd-4142-ae8a-35e33f9e44eb%2F60e1daa1-3666-4772-b59d-0df555e8b569%2Fe0yur8v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Reciprocal Method
Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:
Producing
Departments
Direct overhead
Square footage
Number of
receiving orders
Direct labor
hours
Required:
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:
Direct
overhead.
cost
General
Factory
Receiving
Total
Support Departments
General
Factory Receiving Assembly Finishing
$400,000 $170,000 $45,000 $75,000
5,400 5,400
2,700
1,680. 1,020
Assembly
Finishing
300
General
Factory
General
Factory
0✔
0.1 ✓
-425,5✔
25,51 ✔
$400,0✓ 170,0 $45,00 ✓
0 $
Receiving Assembly Finishing
0.2 ✓ 0.4 ✓ 0.4✔
0 0.56✔ 0.34 ✔
Receiving Assembly Finishing
85,10 ✔
-255,1✔
0
25,000
14 x per direct.
labor hour
40,000
$
per direct labor
hour
2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)
Overhead Rate
75,00✔
160,0 X
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