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Petah, Ltd., of Tel Aviv, Israel, has budgeted costs in its various departments as follows for the coming year:

Factory Administration	$	787,680
Custodial Services		116,915
Personnel		61,731
Maintenance		144,254
Stampingoverhead		1,126,812
Assemblyoverhead		545,508
Total overhead cost	$	2,782,900

The Israeli currency is the shekel, denoted by $. The company allocates service department costs to other departments, in the order listed below.

	Number of Employees	Total Labor- Hours	Square Meters of Space Occupied	Direct Labor- Hours	Machine- Hours
Factory Administration	27		12,900
Custodial Services	14	9,800	5,300
Personnel	18	18,100	12,100
Maintenance	51	44,400	13,200
Stampingoverhead	88	180,000	70,000	49,000	177,000
Assemblyoverhead	132	240,000	20,000	205,000	59,000
	330	492,300	133,500	254,000	236,000

Stamping and Assembly are operating departments; the other departments are service departments. Factory Administration is allocated on the basis of labor-hours; Custodial Services on the basis of square meters occupied; Personnel on the basis of number of employees; and Maintenance on the basis of machine-hours.

Required:

1.

Allocate service department costs to consuming departments by the step-down method. Then compute predetermined overhead rates in the operating departments, using a machine-hours basis in Stamping and a direct labor-hours basis in Assembly. (Leave no cells blank - be certain to enter "0" wherever required. Amounts to be deducted should be indicated with a minus sign. Do not round intermediate calculations. Round your "Predetermined overhead rates" to 2 decimal places and your other answers to the nearest shekel amount. Omit the "$" sign in your response.)

	Factory Administration	Custodial Services	Personnel	Maintenance	Stamping	Assembly
Operating department costs					$ 1,126,812	$ 545,508
Costs to be allocated	$ 787,680	$ 116,915	$ 61,731	$ 144,254
Allocation:
Factory Administration
Custodial Services
Personnel
Maintenance
Total overhead after allocations	$	$	$	$	$	$
Predetermined overhead rate					$	$

2.

Allocate service department costs to consuming departments by the direct method. Again, compute predetermined overhead rates in Stamping and Assembly. (Leave no cells blank - be certain to enter "0" wherever required. Amounts to be deducted should be indicated with a minus sign. Do not round intermediate calculations. Round your final answers to 2 decimal places. Omit the$" sign in your response.)

	Factory Administration	Custodial Services	Personnel	Maintenance	Stamping	Assembly
Operating department costs					$ 1,126,812.00	$ 545,508.00
Costs to be allocated	$ 787,680.00	$ 116,915.00	$ 61,731.00	$ 144,254.00
Allocation:
Factory Administration
Custodial Services
Personnel
Maintenance
Total overhead after allocations	$	$	$	$	$	$
Predetermined overhead rate					$	$

3.

Assume that the company doesnt bother with allocating service department costs but simply computes a single plantwide overhead rate based on total overhead costs (both service department and operating department costs) divided by total direct labor-hours. Compute the plantwide overhead rate. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Plantwide overhead rate

$ per DLH

4.	Suppose a job requires machine and labor time as follows:

	Machine-Hours	Direct Labor-Hours
Stamping Department	250	30
Assembly Department	14	79
Total hours	264	109

Compute the amount of overhead cost that would be assigned to the job if the overhead rates were developed using the stepdown method, the direct method, and the plantwide method. (Use overhead rates rounded to 2 decimal places. Round your intermediate and final answers to 2 decimal places. Omit the "$" sign in your response.)

	Overhead cost
Step-down method	$
Direct method	$
Plantwide method	$

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