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5e sol07-10 - $540,000 $220,000 $137,500 $222,500 General...

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Cost Management Hansen and Mowen Ex 7-10 Name: SOLUTION Enter the appropriate amounts in the shaded cells in columns E, G, I, and K. 1) Cost Driver Information and Allocation Ratios General Power Factory Purchasing Sunscreen Lip Balm Total General factory: Square feet 3,000 - 3,000 9,600 8,400 24,000 Cost allocation ratios 12.50% 12.50% 40.00% 35.00% 100% Purchasing Purchase Orders 20 - - 60 120 200 Cost allocation ratios 10.00% 30.00% 60.00% 100% Power: Machine hours 8,000 24,000 32,000 Cost allocation ratios 25.0% 75.0% 100% Enter the appropriate amounts in the shaded cells in columns E, G, I, K, M, O, and R. Allocation Support Departtments Producing Departments Direct Method dollars x ratio Power Gen. Factory Purchasing Sunscreen Lip Balm Total Direct costs $120,000
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Unformatted text preview: $540,000 $220,000 $137,500 $222,500 General factory: Power $540,000 x 12.50% 67,500 (67,500) Purchasing $540,000 x 12.50% (67,500) 67,500 Sunscreen $540,000 x 40.00% (216,000) 216,000 Lip Balm $540,000 x 35.00% (189,000) 189,000 Subtotal Purchasing Power $287,500 x 10.00% 28,750 (28,750) Sunscreen $287,500 x 30.00% (86,250) 86,250 Lip Balm $287,500 x 60.00% (172,500) 172,500 Subtotal Power: Sunscreen $216,250 x 25.0% (54,063) 54,063 Lip Balm $216,250 x 75.0% (162,188) 162,188 Total $(1) $- $- $493,813 $746,188 $1,240,001 2) Departmental overhead rates Sunscreen Lip Balm Total overhead $493,813 $746,188 Machine hours 8,000 24,000 Overhead rate per machine hour $61.73 $31.09...
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