The following budgeted raw data are for the service departments and the production departments of the...

 

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The following budgeted raw data are for the service departments and the production departments of the Ravelle Manufacturing Company: Budgeted: Service Departments: Maintenance | Payroll Production Departments: A: | B: VOH $50 000 $30 000 $25 000 $30 000 Maintenance Work Order use. 1000 10 400 590 Payroll File use 120 75 35 40 DLH3 6570 3450 70 000 80 000 FOH $40 000 $35 000 $55 000 $70 000 Capacity: Maintenance Work order use 1200 20 500 680 45 100 45 55 | Payroll Files use Actual Useage: Maintenance Work orders. 23 18 55 60 Payroll Files 10 65 40 53 Use the above data to prepare a formal worksheet for distribution to the departments to document your calculation of both the VOH and FOH PORS for the two production departments of the Ravelle Company. PORs are all based on DLH. Allocate the variable service department costs using a budgeted rate for each service based on budgeted cost of the service and budgeted demand. Base the FOH allocations on the maximum resource that could be consumed, in other words, the relative size ratios. Use the step method of allocation with Maintenance first. 1. 10 points. Ravelle Step Answer: Handwritten, scanned to PDF and uploaded 2. 5 points. For the Ravelle Manufacturing Company, prepare the cost matrix you would invert to prepare a reciprocal solution for VOH. The following budgeted raw data are for the service departments and the production departments of the Ravelle Manufacturing Company: Budgeted: Service Departments: Maintenance | Payroll Production Departments: A: | B: VOH $50 000 $30 000 $25 000 $30 000 Maintenance Work Order use. 1000 10 400 590 Payroll File use 120 75 35 40 DLH3 6570 3450 70 000 80 000 FOH $40 000 $35 000 $55 000 $70 000 Capacity: Maintenance Work order use 1200 20 500 680 45 100 45 55 | Payroll Files use Actual Useage: Maintenance Work orders. 23 18 55 60 Payroll Files 10 65 40 53 Use the above data to prepare a formal worksheet for distribution to the departments to document your calculation of both the VOH and FOH PORS for the two production departments of the Ravelle Company. PORs are all based on DLH. Allocate the variable service department costs using a budgeted rate for each service based on budgeted cost of the service and budgeted demand. Base the FOH allocations on the maximum resource that could be consumed, in other words, the relative size ratios. Use the step method of allocation with Maintenance first. 1. 10 points. Ravelle Step Answer: Handwritten, scanned to PDF and uploaded 2. 5 points. For the Ravelle Manufacturing Company, prepare the cost matrix you would invert to prepare a reciprocal solution for VOH.

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Ravelle Manufacturing Company Departmental Overhead Rates and Allocation 1 Departmental Overhead Rat... View the full answer