Machining Assembly Buildings Factory And Grounds Administration Budgeted Overhead $361,956 $420,000 $40,000 $25,000 Square feet 9,000 10,000 1,500 1,000 Number of employees 440 460 50 30 Direct labor hours 452,000 567,250 Machine hours 195,600 23,000
Plantwide versus Departmental Step Method. Knoxville Company distributes some service department costs to other service departments. However, after a department’s costs have been distributed, no costs are assigned back to it. Buildings and Grounds is distributedfirst, using square feet as a base. The number of employees is used as a base for distributing factory Administration. (Have picture)
Required:
1. Compute a plantwide overhead rate, using direct labor hours as a base Round your answer to the nearest cent.
2. Compute the overhead rate for Machining, using machine hours as a base and for Assembly, using direct labor hours as a base. Round answers to the nearest cent.
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