Homework: hapter 15 Homework Score: 5.73 of 30 pts 9-15-30 (similar to) 20, 5 (2

Question

Homework: hapter 15 Homework Score: 5.73 of 30 pts 9-15-30 (similar to) 20, 5 (2 complete) Hw score: 729%, 12 4 or 1 70 pts Question Help The Norther Plain Company has prepared department overhead budgets for budgeted-volume levels besore allocations as folows (Click the icon to view the department overhead budgets.) Management has decided that the most appropriate inventory costs are achieved by using indvidual department overhead rates. These rates are developed after support-department costs are allocated lo operating departments. Bases for allocation are to be he following selected from t (Cick the icon to view the data) Read the requirements Support Departments Departments General Cateteria Plant Operating Bidg and Grounds Personnel Admin· Loss Storeroom Mschaning Assembly Costs incurred Allocation of costs Building and grounds Personnel General plant administration Cafeteria Storeroom Total budgeted costs of operating departments Enter any number in the edit fields and then click Check Answer Check Answer Clear Al 28 PR remalning

Explanation / Answer

We can move ahead with direct method since there is no specific mention about any method Support departments Operating departments Bidge & grounds Personnel General plant admin Cafeteria operating loss Storeroom Machining Assembly Costs incurred 10500 2000 13000 2390 9355 33000 48900 Allocation of costs: Building and grounds -10500 (Based on Sq.feet) (22000:27000) 4714 5786 Personnel (Based on number of employees) (55:140) -2000 564 1436 General plant admin (Based on indirect mfg labor hours) (7000:8400) -13000 5909 7091 Cafeteria operating loss (Based on number of employees) (55:140) -2390 674 1716 Storeroom (Based on no.of requisitions) (6000:2000) -9355 7016 2339 Total budgeted costs of operating departments 0 0 0 0 0 51878 67267

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