Stubing Company has two producing departments and two support centres. The following budgeted data pertain to these four departments: Maintenance and Personnel are the support centres and Assembly and Painting are the producing departments. Maintenance Personnel Assembly Painting Overhead $200,000 S60,000 $43,000 $74,000 5,400 5,400 Square footage 2,700 72 198 Employees 30 25,000 40,000 Direct labour hours Required () Allocate the overhead costs of the support departments to the producing departments using the reciprocal method Using direct labour hours compute departmental overhead rates

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter19: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...
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Stubing Company has two producing departments and two support centres. The following budgeted
data pertain to these four departments:
Maintenance and Personnel are the support centres and Assembly and Painting are the producing
departments.
Maintenance
Personnel
Assembly
Painting
Overhead
$200,000
$60,000
$43,000
$74,000
5,400
5,400
Square footage
2,700
72
198
Employees
30
25,000
40,000
Direct labour hours
Required
(0)
Allocate the overhead costs of the support departments to the producing departments
using the reciprocal method
Using direct labour hours compute departmental overhead rates
(u)
Transcribed Image Text:Stubing Company has two producing departments and two support centres. The following budgeted data pertain to these four departments: Maintenance and Personnel are the support centres and Assembly and Painting are the producing departments. Maintenance Personnel Assembly Painting Overhead $200,000 $60,000 $43,000 $74,000 5,400 5,400 Square footage 2,700 72 198 Employees 30 25,000 40,000 Direct labour hours Required (0) Allocate the overhead costs of the support departments to the producing departments using the reciprocal method Using direct labour hours compute departmental overhead rates (u)
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