uepartment is Square Footage ent ting 3,000 4,000 6,000 3,000 16,000 eting Ehnol

Question

uepartment is Square Footage ent ting 3,000 4,000 6,000 3,000 16,000 eting Ehnology iences Total Alleghany's annual building rental cost is $320,000 What amount of rent expense that should be allocated to the Sciences Department? A) $80,000 B)$120,000 C)$106,667 D)$60,000 10) ESSAY. Write your answer in the space provided or on a separate sheet of paper 11) Burke Company has 160 employees, 88 of whom are in Department 1 and 72 in Department 2. The company expects to incur $166,000 of office supplies costs during the current year. How much of this cost should be allocated to Department 1? 12) Parr Corporation makes three products, X, Y, and Z. Expected overhcad costs for the coming year include: Depreciation on factory building Factory utility costs Supervisory salaries Factory supplies Total $ 140,000 160,000 250,000 Parr uses direct labor hours as the cost driver to allocate overhead costs. Budgeted direct labor hours for each product are: Product X, 15,000 direct labor hours Product Y, 10,000 direct labor hours Product Z, 5,000 direct labor houns Required: 1) Determine the amount of manufacturing overbead that should be allocated to each of the three products. 2) Assume that each unit of Product X requires $40 in direct materials and 3 direct labor hours at a rate of $15 per hour. Calculate the budgeted or expected cost of each unit of X.

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question which is visible properly which is question 11

Office supplies cost per employee

= Total cost / Total number of employees

= $166,000 / 160

= $ 1,037.5 per employee

So, cost to be allocated to department 1

= Number of employees x Cost per employee

= 88 x $ 1,037.5

= $ 91,300

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