Question: Service Department Cost Allocation Presented below are certain operating data for the four departments of Tally Manufacturing Company. Service Production 2 1 2 Total manufacturing

Service Department Cost Allocation Presented below are certain operating data for the four departments of Tally Manufacturing Company. Service Production 2 1 2 Total manufacturing overhead costs either identifiable with or allocated to each department $60,000 $72,000 $90,000 $98,000) Square feet of factory floor space 40,000 80,000 Number of factory workers Planned direct labor hours for the year 10 20,000 30,000 Allocate, to the two production departments, the costs of service departments 1 and 2, using factory floor space and number of workers, respectively, as bases. Do not rounc 50 Identifiable and allocated overhead i Production 1 2 $ 0 $ 0 Reallocation of service departments: Dept. 1: Factory floor space Dept. 2: Number of factory workers Total manufacturing overhead i 0 0 0 0 $ 0 $ 0 What is the apparent overhead rate for each production department if planned direct labor hours are the overhead application base? Round answers to two decimal places, when applicable. Production 1: $ 0 Production 2: $ 0 10:18 AM es. Do not round bases when calculating reallocations of service departments

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!