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|
Direct Method |
Personnel |
Engineering |
Processing |
Assembly |
Total |
|
|
|
|
Direct Costs
|
64,000.00 |
140,000.00 |
1,200,000.00 |
1,600,000.00 |
3,004,000.00 |
|
|
|
|
Square Feet
|
4,000.00 |
2,000.00 |
20,000.00 |
50,000.00 |
76,000.00 |
|
|
|
|
No. of employees
|
30.00 |
60.00 |
400.00 |
500.00 |
990.00 |
|
|
|
|
Allocation |
|
|
|
|
|
|
|
|
| Personnel
cost (400:500) |
(64,000.00) |
- |
28,444.44 |
35,555.56 |
- |
|
|
|
|
Engineering cost (20000:50000) |
- |
(140,000.00) |
40,000.00 |
100,000.00 |
- |
|
|
|
|
Total costs |
- |
- |
1,268,444.44 |
1,735,555.56 |
3,004,000.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Step Down Method |
Personnel |
Engineering |
Processing |
Assembly |
Total |
|
|
|
|
Direct Costs
|
64,000.00 |
140,000.00 |
1,200,000.00 |
1,600,000.00 |
3,004,000.00 |
|
|
|
|
Square Feet
|
4,000.00 |
2,000.00 |
20,000.00 |
50,000.00 |
76,000.00 |
|
|
|
|
No. of employees
|
30.00 |
60.00 |
400.00 |
500.00 |
990.00 |
|
|
|
|
Allocation |
|
|
|
|
|
|
|
|
|
Engineering cost (4000:20000:50000) |
7,567.57 |
(140,000.00) |
37,837.84 |
94,594.59 |
- |
|
|
|
|
Total |
71,567.57 |
- |
1,237,837.84 |
1,694,594.59 |
3,004,000.00 |
|
|
|
| Personnel
cost (400:500) |
(71,567.57) |
- |
31,807.81 |
39,759.76 |
- |
|
|
|
|
Total costs |
- |
- |
1,269,645.65 |
1,734,354.35 |
3,004,000.00 |
|
|
|
|
|
|
|
|
|
|
|
|
| Note: As
per step down method, service department which has more costs will
be allocated first so Engineering department is allocated
first. |
