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

			Support Departments		Producing Departments
			Maintenance	Personnel	Assembly	Painting	Total
Overhead			$200,000	$60,000	$43,000	$74,000	$377,000
Square footage			-	2,700	5,400	5,400	13,500
Number of employees			30	-	72	198	300
Direct Labor Hours			-	-	25,000	40,000

Required:

1.Allocate the overhead costs of the support departments to the producing departments using the reciprocal method.

2. Using direct labor hours, compute departmental overhead rates.

Answer rating: 100% (QA)

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