Chap 7 ex 11

# Chap 7 ex 11 - P=102,040.816 Support Departments Producing...

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Phelim Lennon Cost Management Monday - Thursday 12:30 4/1/2008 Chapter 7 Exercise 11 1. Support Departments Producing Departments Totals Maintenance Personnel Assembly Painting Overhead \$200,000 \$60,000 \$43,000 \$74,000 \$377,000 Square Footage 2,700 5,400 5,400 13,500 Num. of Employees 30 72 198 300 Direct Labor Hours 25,000 40,000 65,000 Proportion of Output Used By Support Departments Producing Departments Maintenance Personnel Assembly Painting Mantenance 0.2 0.4 0.4 Personnel 0.1 0.24 0.66 M= 200,000 + 0.1P P= 60,000 + 0.2M M= 200,000 + 0.10(60,000 + 0.2M) M= 200,000 + 6000 + 0.02M 0.98M= 206,000 M= 210,204.0816 P= 60,000 + 0.2(210,204.0816)
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Unformatted text preview: P=102,040.816 Support Departments Producing Departments Maintenance Personnel Assembly Painting Direct Costs \$200,000.00 \$60,000.00 \$43,000.00 \$74,000.00 Personnel \$10,204.08 \$42,040.82 \$24,483.80 \$67,346.94 Mantenance (\$210,204.08) (\$102,040.82) \$84,081.63 \$84,081.63 Total \$0.00 \$0.00 \$151,565.43 \$225,428.57 2. Departmental Overhead Rates Assembly Painting Overhead \$151,565.43 \$225,428.57 Direct labor hours 25,000 40,000 Overhead Rate \$6.06 \$5.64 Stubing Company Allocation of Overhead - Reciprocal Method...
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