MDJuan - 20,000 10,000 30,000 40,000 Direct labor hours by...

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MD JUAN CENTRO CORP I. Determining overhead cost Valve A Valve B Units produced and sold/year (units) 30,000 5,000 Direct material cost/unit ($) 140 140 Direct labor: Machining dept. 1.5 hr. @ $20/hr.) 30 30 Assembly dept. 1.5 hr. @ $20/hr.) 30 30 Machine time in Machining dept. (hour) 1 1 Budgeted overhead costs: Machining dept. ($) 630,000 Assembly dept. ($) 315,000 II. Allocating Service Dept. Costs Service Dept. Production Dept. Maintenance Eng'g Machining Assembly Overhead cost before allocation ($)
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Unformatted text preview: 20,000 10,000 30,000 40,000 Direct labor hours by maintenance (hrs.) 15,000 20,000 60,000 40,000 Engineering hours (hrs.) 5,000 4,000 50,000 30,000 A. Direct method: Overhead costs Reallocation: Maintenance-20000 12000 8000 Engineering-10000 6250 3750 48,250 51,750 B. Step-down Method: Overhead costs Reallocation: Maintenance-20000 Engineering 3333.333 10000 6666.66667 20000 13,333 8333.33333 5000-13333 48,333 51,667...
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