Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments    Producing Departments                                                   General                                                  Factory                      Receiving              Assembly                        Finishing Direct overhead                 $400,000             $170,000               $45,000                        $75,000 Square footage                      ---                              2,700                   5,400                           5,400 Number of receiving orders     300                          —                           1,680                           1,020 Direct labor hours                            —                         —                            25,000                           40,000 The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the costs of the support departments using the sequential method. (Use the rounded values for subsequent calculations. Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".) Allocation ratios:                                                 General Factory    Receiving    Assembly    Finishing Square footage                           ?                              ?                   ?                       ? Number of receiving orders          ?                             ?                  ?                        ?   Allocations:                                     General Factory    Receiving    Assembly    Finishing Direct overhead cost      ?                                 ?               ?                 ? Allocate:   General Factory              ?                                  ?             ?                 ?   Receiving                         ?                                 ?               ?                ? Total                                   ?                                    ?              ?                ?

Cornerstones of Cost Management (Cornerstones Series)
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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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Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:


Support Departments    Producing Departments
                                                  General
                                                 Factory                      Receiving              Assembly                        Finishing
Direct overhead                 $400,000             $170,000               $45,000                        $75,000
Square footage                      ---                              2,700                   5,400                           5,400
Number of receiving orders     300                          —                           1,680                           1,020
Direct labor hours                            —                         —                            25,000                           40,000
The support departments are ranked in order of highest cost to lowest cost.

Required:

1. Allocate the costs of the support departments using the sequential method. (Use the rounded values for subsequent calculations. Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".)

Allocation ratios:

                                                General Factory    Receiving    Assembly    Finishing
Square footage                           ?                              ?                   ?                       ?

Number of receiving orders          ?                             ?                  ?                        ?

 

Allocations:
                                    General Factory    Receiving    Assembly    Finishing
Direct overhead cost      ?                                 ?               ?                 ?

Allocate:
  General Factory              ?                                  ?             ?                 ?
  Receiving                         ?                                 ?               ?                ?

Total                                   ?                                    ?              ?                ?

 

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