exercise 7-24

Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar.) Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.) Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating support service costs by switching to the direct method. Required: 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.) Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.) Refer to the data in Exercise 7.22. The support departments are ranked in order of highest cost to lowest cost. Required: Allocate the costs of the support departments using the sequential method. (Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar.) Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)