Indirect cost allocation

Indirect Cost Allocation: Direct Method Sprint Manufacturing Company has two production departments, Melting and Molding. Direct general plant managemen and plant security costs benefit both production departments. Sprint allocates general plant management costs on the basis of the number of production employees and plant security costs on the basis of space occupied by the production departments. In November, the following overhead costs were recorded: Melting Department direct overhead $190,000 Molding Department direct overhead 300,000 General plant management 100,000 Plant security 25,000 Other pertinent data follow: Melting Molding Number of employees 30 45 Space occupied (square feet) 10,000 30,000 Machine hours 10,000 2,000 Direct labor hours 4,000 20,000 (a) Prepare a schedule allocating general plant management costs and plant security costs to the Melting and Molding Departments Department Total Melting Molding General Plant Management $ $ $ Plant security $ $ $ (b) Determine the total departmental overhead costs for the Melting and Molding Departments. Melting $ Molding $ (c) Assuming the Melting Department uses machine hours and the Molding Department uses direct labor hours to apply overhead to production, calculate the overhead rate for each production department. Round answers to two decimal places. Melting $ Molding $