Knoxville Company distributes some service department costs to other service departments. However, after a department's costs have been distributed, no costs are assigned back to it. Buildings and Grounds is distributed first, using square feet as a base. The number of employees is used as a base for distributing Factory Administration.

Required:
(1) Compute a plant wide overhead rate, using direct labor hours as a base. Round your answer to the nearest cent.
(2) Compute the overhead rate for Machining, using machine hours as a base, and for Assembly, using direct labor hours as a base. Round answers to the nearest cent.

Transcribed Image Text:

Buildings and Factory Machining AssemblyGrounds Administration Budgeted overhead... Square feet.. Number of employees Direct labor hours... $361,956 9,000 440 452,000 . 195,600 $420,000 10,000 460 567.250 23,000 $40,000 1,500 50 $25,000 1,000 30