Question: Direct and sequential method Kumar Company has two producing departments and two support centers. The followin budgeted data pertain to these four departments Support Departments
Kumar Company has two producing departments and two support centers. The followin budgeted data pertain to these four departments Support Departments Producing Departments MaintenancePersonnel Assembly Painting $74,000 5,400 198 40,000 Overhead Square footage Number of employees Direct labor hours $200,000 $60,000 $43,000 5,400 72 25,000 2,700 30 1. Allocate the cost of the support departments to the producing department using the direct method. Using direct labor hours, compute departmental overhead rates for the two producing departments. Allocate the cost of the support department using the sequential method Using direct labor hours, compute departmental overhead rates for their two producing departments. 2. 3. 4
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