Calculating Departmental Overhead Rates Using Post-Allocation CostsValron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating andAssembly.SupportProducingDepartmentsDepartmentsHumanGeneralResourcesFactoryFabricating AssemblyDirect costs$160,000 $300,000$114,400$96,000Normal activity:Number of7087.5162.5employeesSquare footage1,1004,00012,000The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory areallocated on the basis of square footage. Valron Company uses the direct method of support department cost allocation. Solve for theallocated costs to Fabricating and Assembly using the direct method of support department cost allocation. The Fabricating Departmentoverhead rate is based on normal activity of 80,000 machine hours. The Assembly Department overhead rate is based on normal activityof 160,000 direct labor hours.Job 316 required six machine hours in Fabricating and five direct labor hours in Assembly. Total direct materials cost $140, and totaldirect labor cost was $50. Required:1. Calculate the overhead rate for Fabricating based on machine hours and the overhead rate for Assembly based on direct labor hours. Ifrequired, round your answers to the nearest cent. Use the rounded values for subsequent calculations.Overhead RateFabricating department2$1.64X per mach. hr.Assembly department2.06 | Х рer DLH2. Using the overhead rates calculated in Requirement 1, calculate the cost of Job 316. If required, round your answer to the nearest cent.208.53. What if Job 316 had required two machine hour in Fabricating and five direct labor hours in Assembly? Direct labor and direct materialscosts remained the same. Calculate the new cost of Job 316. If required, round your answer to the nearest cent.203.58 | Х

Name: Calculating Departmental Overhead Rates Using Post-Allocation CostsVa
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Calculating Departmental Overhead Rates Using Post-Allocation CostsValron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating andAssembly.SupportProducingDepartmentsDepartmentsHumanGen