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:

Factory Administration Custodial Services Personnel Maintenance Machining-overhead Assembly-overhead $ 613,900 111,120 81,795 133,775 1,248,05 607,860 Total cost $2,796,500 The company allocates service department costs to other departments in the order listed below. Square Feet of Space Hours OccupiedHours 10,200 7,800 8,500 18,100 60,000 Total Labor Direct Labor Machine- Hours Department Factory Administration Custodial Services Personnel Maintenance Machining Assembly Number of Employees 31 18 15 56 50 200 9,600 16,500 44,700 120,000 160,000 55,000 205,000 41,000 20,000 195,000 370 350,800 124,600 250,000 246,000

Explanation / Answer

Answer:1

Answer:3 Plantwide overhead rate=Total overhead cost/Total direct labor hours

=2796500/350800

=$7.97 per DLH

Particulars Factory Administration Custodial Services Personnel Maintenance Machining Assembly Operating department cost 1248050 607860 Cost to be allocated 613900 111120 81795 133775 Allocation: Factory Administration ($1.75 per DLH) 16800 28875 78225 210000 280000 Custodial Services ($1.2 per sq foot occupied) 10200 21720 72000 24000 Personnel ($395 per employee) 22120 19750 79000 Maintenance ($1.04 per machine hours) 213200 42640 Total overhead after allocations 613900 127920 120870 255840 1763000 1033500 Direct labor hours 160000 Machine hours 205000 Predetermined overhead rate 8.6 6.459375

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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