Exercise 7.22 Reciprocal Method

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

Required:

1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".)

Allocation ratios:

	General Factory	Receiving	Assembly	Finishing
Square footage
Number of receiving orders

Allocations:

	General Factory	Receiving	Assembly	Finishing
Direct overhead cost	$	$	$	$
General Factory
Receiving
Total	$	$	$	$

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

	Overhead Rate
Assembly	$ per direct labor hour
Finishing	$ per direct labor hour

Exercise 7.22 Reciprocal Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:Required: 1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".) Allocation ratios:General Factory Receiving Assembly FinishingSquare footageNumber of receiving orders Allocations:General Factory Receiving Assembly FinishingDirect overhead cost $ $ $ $ General FactoryReceivingTotal $ $ $ $2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)Overhead RateAssembly $ per direct labor hour Finishing $ per direct labor hour