The Southern Wind Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: LOADING... (Click the icon to view the department overhead budgets.) Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following: LOADING... (Click the icon to view the data.) Read the requirementsLOADING.... Question content area bottom Part 1 Requirement 1. Using the step-down method, allocate support-department costs. Develop overhead rates per direct manufacturing labor-hour for machining and assembly. Allocate the costs of the support departments in the order given in this problem. Use the allocation base for each support department you think is most appropriate. Begin by selecting the allocation base for each support department. Support Department Allocation Base Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Support departments: Building and grounds $25,500 Personnel 435 General plant administration 36,540 Cafeteria: Operating loss 672 Storeroom 6,490 $69,637 Operating departments: Machining $30,000 Assembly 50,500 80,500 Total for support and operating departments $150,137 Department Direct Manufacturing Labor-Hours Number of Employees Square Feet of Floor Space Occupied Indirect Manufacturing Labor-Hours Number of Requisitions Building and grounds 0 0 0 0 0 Personnelª 0 0 4,500 0 0 General plant administration 0 30 6,000 0 0 Cafeteria: operating loss 0 12 4,800 1,000 0 Storeroom 0 6 7,200 1,000 0 Machining 7,000 45 22,500 6,000 5,000 Assembly 21,000 57 105,000 34,000 3,000 Total 28,000 150 150,000 42,000 8,000 ªBasis used is number of employees
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My seore: 1.1220 pts (5.6.20)
The Bouthem Wind Company has prepared department ovethead budgets for budgeted-volume levels before allocations as culums:
III (Click the ioon to view the department overhead budgets.)
Management has decised that the most aporopriate inventory costs are achieved by using individual department overhead rates. Thuse rations
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Data table
Department Direct Manufacturing Labor Alours Number of Empleyeses Somare Feet of Flow Source Orempient Indirect Manufacturing Labor-Hours Number of Requisitions Building and grounds 0 0 0 0 0 Personnel ^("a ") 0 0 4.400 0 0 General plant administration * w +,994 0 0 Cafeteria: operating loss 0 48 4.300 1,000 0 Storeroom 0 6 7.200 4.900 0 Machining 7 and 48 22.409 6,000 5,000 Assembly 21.000 47 106.000 34.000 3.000 Total 28000 130 150.000 42.000 8.000 Fisasis used is number of employees
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The Southern Wind Company has prepared department overhead budgets for budgeted-volume levels before allocations as follow
The Southern Wind Company has prepared department overhead b
