A company with two producing departments and two support departments has the following data:     Support Departments Producing Departments   General Factory Purchasing Power Pesticide Liquid Fertilizer Direct overhead $250,000 $125,000 $70,000 $80,000 $105,000 Square footage   1,600 1,800 3,900 5,450 Machine hours 1,400 1,500   30,000 10,000 Purchase orders 100 5 15 250 125   Use the direct method to allocate the support department costs to the producing departments. (Round allocation percentages to 4 significant digits) Round final answers to nearest dollar except predetermined overhead rates to the nearest cent General factory to Pesticide and Fertilizer, respectively  (nearest dollar) Purchasing to Pesticide and Fertilizer, respectively    (nearest dollar) Power to Pesticide and Fertilizer, respectively    (nearest dollar) using machine hours, compute the departmental predetermined overhead rates for Pesticide and Fertilizer, respectively  (nearest cent) 1. General: ____________and _______________ 2. Purchasing: _______________and __________ 3. Power: _____________and _______________ 4. ________________per machine hour and _____________per machine hour respectively

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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A company with two producing departments and two support departments has the following data:

 

  Support Departments Producing Departments
  General Factory Purchasing Power Pesticide Liquid Fertilizer
Direct overhead $250,000 $125,000 $70,000 $80,000 $105,000
Square footage   1,600 1,800 3,900 5,450
Machine hours 1,400 1,500   30,000 10,000
Purchase orders 100 5 15 250 125

 

Use the direct method to allocate the support department costs to the producing departments. (Round allocation percentages to 4 significant digits) Round final answers to nearest dollar except predetermined overhead rates to the nearest cent

  1. General factory to Pesticide and Fertilizer, respectively  (nearest dollar)
  2. Purchasing to Pesticide and Fertilizer, respectively    (nearest dollar)
  3. Power to Pesticide and Fertilizer, respectively    (nearest dollar)
  4. using machine hours, compute the departmental predetermined overhead rates for Pesticide and Fertilizer, respectively  (nearest cent)
1. General: ____________and _______________
2. Purchasing: _______________and __________
3. Power: _____________and _______________
4. ________________per machine hour and _____________per machine hour respectively
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