In addition to the 3D Printers, Jeff’s also manufactures cameras and has two sup
ID: 342392 • Letter: I
Question
In addition to the 3D Printers, Jeff’s also manufactures cameras and has two support departments: sales and administration. The table below presents a breakdown of how the service departments’ work is distributed to the manufacturing departments. Sales departments OH is allocated by sales visits made and administration by the number of employees in each department.
Sales
Administration
Total Costs
$400,000
$500,000
Driver:
Sales
N/A
5
Administration
0
N/A
3D Printers
1,500
400
Cameras
500
95
Total Drivers
2,000
500
2. How much of the service overhead should be allocated to each new 3D Printer (use the number of units transferred to finished goods from the Production Reports – this will be 80,000)?
Sales
Administration
Total Costs
$400,000
$500,000
Driver:
Sales
N/A
5
Administration
0
N/A
3D Printers
1,500
400
Cameras
500
95
Total Drivers
2,000
500
Explanation / Answer
Answer
Overhead (A)
Total drivers (B)
Activity rate per driver (C=A/B)
No. of drivers for 3D printer (D)
Overhead allocated (C x D)
Sales
$400000
2000
$200
1500
$300000
Administration
$500000
500
$1000
400
$400000
TOtal
$900000
$700000
Overhead (A)
Total drivers (B)
Activity rate per driver (C=A/B)
No. of drivers for 3D printer (D)
Overhead allocated (C x D)
Sales
$400000
2000
$200
1500
$300000
Administration
$500000
500
$1000
400
$400000
TOtal
$900000
$700000
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