managerial accounting

Project Description:

allocating costs of support departments; step-down and direct methods. the central valley
company has prepared department overhead budgets for budgeted-volume levels before allocations
as follows:
support departments:
building and grounds $10,000
personnel 1,000
general plant administration 26,090
cafeteria: operating loss 1,640
storeroom ƒƒ2,670 $ 41,400
operating departments:
machining $34,700
assembly ƒ48,900 ƒƒ83,600
total for support and operating departments $125,000
department
direct
manufacturing
labor-hours
number of
employees
square feet of
floor space
occupied
manufacturing
labor-hours
number of
requisitions
building and grounds 0 0 0 0 0
personnela 0 0 2,000 0 0
general plant administration 0 35 7,000 0 0
cafeteria: operating loss 0 10 4,000 1,000 0
storeroom 0 5 7,000 1,000 0
machining 5,000 50 30,000 8,000 2,000
assembly 15,000 100 ƒ50,000 17,000 1,000
total 20,000 200 100,000 27,000 3,000
abasis used is number of employees.
1. using the step-down method, allocate support-department costs. develop overhead rates per direct manu- required
facturing labor-hour for machining and assembly. allocate the costs of the support departments in the order
given in this problem. use the allocation base for each support department y
Skills Required:
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Price Type: Negotiable

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