Question: Reciprocal Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments

 Reciprocal Method Eilers Company has two producing departments and two support

Reciprocal Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments General Factory Recelving Assembly Finishing $400,000 $170,000 Direct overhead Square footage Number of receiving orders Direct labor hours $45,000 5,400 1,6B0 25,000 $75,000 5,400 1,020 40,000 2,700 300 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 "O.) Allocation ratios: General Factory ReceivingAssembly Finishing Square footage Number of receiving orders General Factory Recelving Direct overhead cost 400,000170,000 45,000 75,000 General Factory Total 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.) Overhead Rate Assembly per direct labor hour Finishing per direct labor hour Check Hy Work Previous Next

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