IT support costs are allocated to productive departments based on time of service while Rep&Maint...
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IT support costs are allocated to productive departments based on time of service while Rep&Maint costs are allocated based on hours.Department IT support Rep&Maint Cutting Welding TotalDepartmental overhead $600,000 $700,000 $5,000,000 $3,700,000 $10,000,000IT Time of service 85 80 500 420 1085R&M hours 300 500 14,000 26,000 40,800Cutting uses machine hours as a base for overhead allocation and expects to use 80,000 MH this year. Welding uses direct labor hours as a base for overhead allocation and expects to use 65,000 DLH this year. During the year, Job 70B is completed. The job required: Cutting Welding DLH 140 350 MH 280 125Required:Part 1.a. Complete a cost allocation calculation/table using the step method starting with ITto put all overhead amounts into the productive departments.b. Calculate the predetermind overhead rates for the productive departments.c. Calculate the total overhead applied to Job 70B.
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