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Direct Method

Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:

Support DepartmentsProducing DepartmentsGeneral FactoryReceivingAssemblyFinishingDirect overhead$$410,000$$$170,000$$$40,000$$$80,000$Square footage$2,9005,8005,800$Number of receiving orders$3501,7501,350$Direct labor hours$23,00047,000$

The company has decided to simplify its method of allocating support service costs by switching to the direct method.

Required:

$1.$Allocate the costs of the support departments to the producing departments using the direct method. Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar. Use the rounded values for subsequent calculations.

Allocation ratios:

$$AssemblyFinishingSquare footagefill in the blank $1$fill in the blank $2$Number of receiving ordersfill in the blank $3$fill in the blank $4$Allocations:$$AssemblyFinishingGeneral Factory$fill in the blank $5$$fill in the blank $6$Receivingfill in the blank $7$fill in the blank $8$Direct costsfill in the blank $9$fill in the blank $10$Total$fill in the blank $11$$fill in the blank $12$

$2.$Using direct labor hours, compute departmental overhead rates. $($Round to the nearest cent.$)$

$$Overhead RateAssemblyfill in the blank $13$per direct labor hourFinishingfill in the blank $14$per direct labor hour

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