The Michigan Company provides the following selected data about its three service and two ope departments:...
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The Michigan Company provides the following selected data about its three service and two ope departments: Production Production Service Service Department 1 Department 2 Department 1 Department 2 Overhead costs 200,000 267,000 180,000 105,000 Number of 315 210 60 35 Employees Square feet of 40,000 100,000 5,000 10,000 space occupied Hours of press 15,000 30,000 0 0 time Direct labor 10,000 20,000 0 0 hours Machine hours 50,000 60,000 The order and bases for allocating service department costs is given below: SD1; allocation base is number of employees SD2; Allocation base is space occupied Assume that PD1 and PD2 both use direct labor hours for computing OH rate. The Michigan Company provides the following selected data about its three service and two ope departments: Production Production Service Service Department 1 Department 2 Department 1 Department 2 Overhead costs 200,000 267,000 180,000 105,000 Number of 315 210 60 35 Employees Square feet of 40,000 100,000 5,000 10,000 space occupied Hours of press 15,000 30,000 0 0 time Direct labor 10,000 20,000 0 0 hours Machine hours 50,000 60,000 The order and bases for allocating service department costs is given below: SD1; allocation base is number of employees SD2; Allocation base is space occupied Assume that PD1 and PD2 both use direct labor hours for computing OH rate.
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