eBook

Print Item

Calculating Departmental Overhead Rates Using Post$-$Allocation Costs

Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.

$\backslash$table$[[,$Support Departments,Producing Departments$],[,\backslash$table$[[$Human$],[$Resources$]],\backslash$table$[[$General$],[$Factory$]],$Fabricating,Assembly$],[$Direct costs,$$150,000,$$$360,000,$$$120,900,$$$86,000],[$Normal activity:,,,,$],[$Number of employees,$-,60,45,80],[$Square footage,$(1,500,-,6,000,14,000]]$

activity of $160,000$ direct labor hours.

Job $316$ required six machine hours in Fabricating and four direct labor hours in Assembly. Total direct materials cost $$120,$ and totallyirect labor cost was $$80.$

Required:

Overhead Rate

$\backslash$table$[[$Fabricating department,$$,$per mach. hr$.],[$Assembly department,$$,$per DLH$]]$

Using the overhead rates calculated in Requirement $1,$ calculate the cost of Job $316.$ If required, round your answer to the nearest cent.

$$

$$

Previous