hapter 7 Homework Calculating Departmental Overhead Rates Using Post-Allocation Costs Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Number employees Support Departments Required: Human General Resources Factory $175,000 $330,000 Fabricating deartment 1,200 65 200 Producing Departments Square footage The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Valron Company uses the direct method of support department cost allocation. Solve for the allocated costs to Fabricating and Assembly using the direct method of support department cost allocation. The Fabricating Department overhead rate is based on normal activity of 88,000 machine hours. The Assembly Department overhead rate is based on normal activity of 175,000 direct labor hours Fabricating Assembly $114,100 $97,000 7 60 Job 316 required nine machine hours in Fabricating and three direct labor hours in Assembly. Total direct materials cost $120, and total direct labor cost was $80. Overhead Rate 90 3,500 1. Calculate the overhead rate for fabricating based on machine hours and the overhead rate for Assembly based on direct labor hours. If required, round your answers to the nearest cent. Use the rounded values for subsequent is hi 14,400

Calculating Departmental Overhead Rates Using Post-Allocation Costs Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. The costs of the Human Resources Department are allocated on the basis of number or employees, and the costs of Generai factory are allocated on the basis of square footage. Valron Company uses the direct method of support department cost allocation. Solve for the allocated costs to Fabricating and Assembly using the direct method of support department cost allocation. The Fabricating Department overhead rate is based on normal activity of 88,000 machine hours. The Assembly Department overhead rate is based on normal activity of 175,000 direct labor hours. Job 316 required nine machine hours in Fabricating and three direct labor hours in Assembly. Total direct materials cost $120, and totat direct labor cost was $80. Required 1. Calculate the overhead rate for Fabricating based on machine hours and the overhead rate for Assembly based on direct labor hours. If required, round your answers to the nearest cent. Use the rounded values for subsequent calculations. The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Valron Company uses the direct method of support department cost allocation. Solve for the allocated costs to Fabricating and Assembly using the direct method of support department cost allocation. The Fabricating Department overhead rate is based on normal activity of 88,000 machine hours. The Assembly Department overhead rate is based on normal activity of 175,000 direct labor hours. Job 316 required nine machine hours in Fabricating and three direct labor hours in Assembly. Total direct materials cost $120, and total direct labor cost was $80. Required: 1. Calculate the overhead rate for Fabricating based on machine hours and the overhead rate for Assembly based on direct labor hours. If required, round your answers to the nearest cent. Use the rounded values for subsequent calculations. 2. Using the overhead rates calculated in Requirement 1 , calculate the cost of 306316. If required, round your answer to the nearest cent. 3. What if Job 316 had required one machine hour in Rabricating and thred direct labor hours in Assembly? Direct labor and direct materials costs remalied the same. Calculate the new cest of Jot 316 . Ifrequired, round your answer to the nearest cent