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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

FINANCIAL ACCOUNTING
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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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
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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