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Support Departments Producing Departments General Factory Receiving Assembly Finishing Direct overhead $400,000 $160,000 2,700 Square footage Number of receiving orders Direct labor hours $43,000 5,400 1,680 25,000 $74,000 5,400 1,020 40,000 300

Support Departments Producing Departments General Factory Receiving Assembly Finishing Direct overhead $400,000 $160,000 2,700 Square footage Number of receiving orders Direct labor hours $43,000 5,400 1,680 25,000 $74,000 5,400 1,020 40,000 300

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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Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:

Required:
1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar.)
2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)

Support Departments Producing Departments General Factory Receiving Assembly Finishing Direct overhead $400,000 $160,000 2,700 Square footage Number of receiving orders Direct labor hours $43,000 5,400 1,680 25,000 $74,000 5,400 1,020 40,000 300
Transcribed Image Text:Support Departments Producing Departments General Factory Receiving Assembly Finishing Direct overhead $400,000 $160,000 2,700 Square footage Number of receiving orders Direct labor hours $43,000 5,400 1,680 25,000 $74,000 5,400 1,020 40,000 300
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