Reciprocal Method Eilers Company has two producing departments and two support departments. The following budgeted...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Reciprocal Method
Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:
Support Departments
Producing Departments
GeneralFactory
Receiving
Assembly
Finishing
Direct overhead
$400,000
$170,000
$42,000
$71,000
Square footage
2,700
5,400
5,400
Number of receiving orders
300
1,680
1,020
Direct labor hours
25,000
40,000
Required:
1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".)
Allocation ratios:
General Factory
Receiving
Assembly
Finishing
Square footage
?
?
?
?
Number of receiving orders
?
?
?
?
Allocations:
General Factory
Receiving
Assembly
Finishing
Direct overhead cost
$?
$?
$ ?
$?
General Factory
?
?
?
?
Receiving
?
?
?
?
Total
$?
$?
$?
$?
2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)
Overhead Rate
Assembly
$. ? per direct labor hour
Finishing
$. ? per direct labor hour
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
