Question Content Area

Reciprocal Method

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

Support DepartmentsProducing DepartmentsGeneral

FactoryReceivingAssemblyFinishingDirect overhead$$400,000$$$160,000$$$43,000$$$74,000$Square footage$2,7005,4005,400$Number of receiving orders$3001,6801,020$Direct labor hours$25,00040,000$

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 FactoryReceivingAssemblyFinishingSquare footagefill in the blank $1$fill in the blank $2$fill in the blank $3$fill in the blank $4$Number of receiving ordersfill in the blank $5$fill in the blank $6$fill in the blank $7$fill in the blank $8$

Allocations:

$$General FactoryReceivingAssemblyFinishingDirect overhead cost$fill in the blank $9$$fill in the blank $10$$fill in the blank $11$$fill in the blank $12$General Factoryfill in the blank $13$fill in the blank $14$fill in the blank $15$fill in the blank $16$Receivingfill in the blank $17$fill in the blank $18$fill in the blank $19$fill in the blank $20$Total$fill in the blank $21$$fill in the blank $22$$fill in the blank $23$$fill in the blank $24$

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

$$Overhead RateAssembly$fill in the blank $25$per direct labor hourFinishing$fill in the blank $26$per direct labor hour