The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as

Question

The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for the coming year:

Machining and Assembly are operating departments; the other departments are service departments. Factory Administration is allocated on the basis of labor-hours; Custodial Services on the basis of square feet occupied; Personnel on the basis of number of employees; and Maintenance on the basis of machine-hours.

The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for the coming year:

2. Allocate service department costs to consuming departments by the direct method. Again, compute predetermined overhead rates in Machining and Assembly. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round "Predetermined overhead rates" to 2 decimal places and other answers to the nearest whole dollar amount.) Custodial Administration Services Factory Personnel Machining Assembly Maintenance $1,592,935 $ Operating department costs Costs to be allocated Allocation: 876,220 604,240 $ 104,500 $ 56,386$ 201,244 Factory administration Custodial services Personnel Maintenance Total overhead after allocations 604,240 $ 104,500 $ 56,386$ 201,244 $1,592,935 S$ 876,220 Predetermined overhead rate

Explanation / Answer

Particulars Factory Administration Custodial services Personnel Maintenance Machining Assembly Operating Department costs 1592935.00 876220.00 Cost to be allocated 604240 104500 56386 201244 Allocation: Factory Administartion -604240 172640.00 431600.00 Cutodial Services -104500 74642.86 29857.14 Personnel -56386 22554.40 33831.60 Maintenance -201244 150933.00 50311.00 Total overhead after allocations 0 0 0 0 2013705.26 1421819.74

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.