Let us assume that Company X is a manufacturing company and it has both service and...

 

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Let us assume that Company X is a manufacturing company and it has both service and production departments as shown in the table below SERVICE DEPARTMENTS PRODUCTION DEPARTMENTS R&M Warehouse R&M Warehouse 200 services 300 services 80,000 50,000 Machinery 600 services 400 services 100,000 Assembly 200 services 300 services 200,000 FOH ($) Required: a) Please assign service department costs to production departments by using "Algebraic Method" (20pts) b) Assume that total machine hours in the machinery department are 20,000 and total direct labour hours in the assembly department are 10,000. Please calculate overhead application rates for both Machinery and Assembly Departments (5p) c) Assume that Product A requires ten machine hours (in the machinery department) and twenty direct labour hours (in the assembly department) to be completed. Please calculate overhead cost to be assigned to Product A. (5p) Let us assume that Company X is a manufacturing company and it has both service and production departments as shown in the table below SERVICE DEPARTMENTS PRODUCTION DEPARTMENTS R&M Warehouse R&M Warehouse 200 services 300 services 80,000 50,000 Machinery 600 services 400 services 100,000 Assembly 200 services 300 services 200,000 FOH ($) Required: a) Please assign service department costs to production departments by using "Algebraic Method" (20pts) b) Assume that total machine hours in the machinery department are 20,000 and total direct labour hours in the assembly department are 10,000. Please calculate overhead application rates for both Machinery and Assembly Departments (5p) c) Assume that Product A requires ten machine hours (in the machinery department) and twenty direct labour hours (in the assembly department) to be completed. Please calculate overhead cost to be assigned to Product A. (5p)

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