Using the direct method, compute for the factory overhead rate of the D department if it apply overhead based on direct labor hours and budgeted direct labor hours for the period total to 75,000 hours. Sylvie Corporation has three production departments: K, D, and C. It also has two service departments Administration and Personnel. Administration costs are allocated based on value of assets employed, and Personnel costs are allocated based on number of employees. Assume that Administration provides more service to the other departments than does the Personnel Department. Department Administration Direct Costs Employees Asset Value 900,000 1,200,000 600,000 300,000 1,600,000 1,800,000 700,000 1,400,000 400,000 50 20 Personnel K 30 D 10 500,000 20
Using the direct method, compute for the factory overhead rate of the D department if it apply overhead based on direct labor hours and budgeted direct labor hours for the period total to 75,000 hours. Sylvie Corporation has three production departments: K, D, and C. It also has two service departments Administration and Personnel. Administration costs are allocated based on value of assets employed, and Personnel costs are allocated based on number of employees. Assume that Administration provides more service to the other departments than does the Personnel Department. Department Administration Direct Costs Employees Asset Value 900,000 1,200,000 600,000 300,000 1,600,000 1,800,000 700,000 1,400,000 400,000 50 20 Personnel K 30 D 10 500,000 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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