Question: could someone please help me solve this 3 part problem? and show me the work used to help me understand this content? Problem 4-25A (Algo)
Problem 4-25A (Algo) Fairness and cost pool allocations LO 4-1, 4-2, 4-3, 4-5 Stuart Monutactuing Coinpany uses two departments to make its producte. Department i is a cuiting department that is machine: intensive and uses very fex employees. Mechines cut and form parts and then place the finithed parts on a conveyor belt that carnies them to Depertinent il where they are assembied into finished ooots. The assembly department is labar intenseve and requires momy. wockers tb ossemble ports into finshed goods. The comparys inanufactuind facily incurs fwo signaficant overhead coats empioyee tinge benetits and alility costs. The annual costs of frinpe benefits are 5308000 and ubity costs are $235,000. The fypical coestumptioit patterns for the tavo departments are as folows: The suptrisol of each department reseives a bonun bused on how well the department controls costs. The company's current policy. cequites usiog a single allocation bave fmachine hours or lobor hours) to alocate the totol overhead cost of $544,000. Required 0. Assume that you are mine superveor or Departrent l Choose the alocaton base that would minimize your clepartinents share of the totat overhead cost Calculate the amont of ovethead that would be olocated to both departmentr using the base that you b. Abtume that you are the supervedr of Department is Chopse the alocotion base that would minimite your departmeot s share of. the total okentead cost Calculate the dmount of ovemesd thot would be alocated to bath departments using the bose that you c. Asuatne that you ane the piant marager and have the outhooty to change the compacys oveitiead allocaton policy formulate an Complete this quection by entering your answers in the tabs below. Problem 4-25A (Algo) Fairness and cost pool allocations LO 4-1, 4-2, 4-3, 4-5 Stuart Monutactuing Coinpany uses two departments to make its producte. Department i is a cuiting department that is machine: intensive and uses very fex employees. Mechines cut and form parts and then place the finithed parts on a conveyor belt that carnies them to Depertinent il where they are assembied into finished ooots. The assembly department is labar intenseve and requires momy. wockers tb ossemble ports into finshed goods. The comparys inanufactuind facily incurs fwo signaficant overhead coats empioyee tinge benetits and alility costs. The annual costs of frinpe benefits are 5308000 and ubity costs are $235,000. The fypical coestumptioit patterns for the tavo departments are as folows: The suptrisol of each department reseives a bonun bused on how well the department controls costs. The company's current policy. cequites usiog a single allocation bave fmachine hours or lobor hours) to alocate the totol overhead cost of $544,000. Required 0. Assume that you are mine superveor or Departrent l Choose the alocaton base that would minimize your clepartinents share of the totat overhead cost Calculate the amont of ovethead that would be olocated to both departmentr using the base that you b. Abtume that you are the supervedr of Department is Chopse the alocotion base that would minimite your departmeot s share of. the total okentead cost Calculate the dmount of ovemesd thot would be alocated to bath departments using the bose that you c. Asuatne that you ane the piant marager and have the outhooty to change the compacys oveitiead allocaton policy formulate an Complete this quection by entering your answers in the tabs below
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
