sing the step-down method, allocate support-department costs. Allocate the costs of the support departments in the order
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Question:
sing the step-down method, allocate support-department costs. Allocate the costs of the support departments in the order given in this problem. (Round all indirect allocation rates to the nearest cent and all other computations to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.)
Support Departments | Operating Departments | |||||||
General | Cafeteria | |||||||
Bldg and | Plant | Operating | ||||||
Grounds | Personnel | Admin. | Loss | Storeroom | Machining | Assembly | ||
Costs incurred | $56,000 | $2,060 | $22,785 | $225 | $3,720 | $33,000 | $52,400 | |
Allocation of costs: | ||||||||
Building and grounds | $(56,000) | 140 | 1,470 | 700 | 840 | 4,900 | 47,950 | |
Personnel | $(2,200) | 385 | 110 | 55 | 550 | 1,100 | ||
General plant administration | $(24,640) | 1,600 | 800 | 8,000 | 14,240 | |||
Cafeteria | $(2,635) | 85 | 850 | 1,700 | ||||
Storeroom | $(5,500) | 2,750 | 2,750 | |||||
Total budgeted costs of operating departments | $50,050 | $120,140 |
Part 3
Develop overhead rates per direct manufacturing labor-hour for machining and assembly using the step-down method. (Round the overhead rates to three decimal places.)
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