Please answer ALL requirements. P15-30 (final answer) Question Help The Southern Wind Company has pr

 
   

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadlines.  

Please answer ALL requirements.

P15-30 (final answer) Question Help The Southern Wind Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: E: (Click the icon to view the department overhead budgets.) Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after support department costs are allocated to operating departments. Bases for allocation are to be selected from the following: E: (Click the icon to view the data.) Read the requirements. Requirement 1. Using the step-down method, allocate support-department costs. Develop overhead rates per direct manufacturing labor-hour for machining and assembly. Allocate the costs of the support departments in the order given in this problem. Use the allocation base for each support department you think is most appropriate. (Round all indirect allocation rates to the nearest cent and all other computations to the nearest whole dollar. Round the overhead rates to three decimal places.) Overhead rate per direct manufacturing labor-hour Step-down method: Machining Assembly Enter any number in the edit fields and then click Check Answer. A parts 4 remaining Clear All Check Answer i Data Table $ 9,600 280 Support departments: Building and grounds Personnel General plant administration Cafeteria: Operating loss Storeroom Operating departments: Machining 17,555 1,865 5,570 $ 34,870 $ 34,700 52,400 Assembly 87,100 121,970 $ Total for support and operating departments Print Print Done Done i Data Table . X Direct Manufacturing Labor-Hours Number of Employees Square Feet of Floor Space Occupied Manufacturing Labor-Hours Number of Requisitions 6,000 Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Machining Assembly 3,500 2,000 5.000 1,000 2,000 5,000 10,000 5,000 35,000 28,500 80,000 2,500 2,500 8,500 16,500 15,000 200 5,000 Total Print Done 0 Requirements 1. Using the step-down method, allocate support department costs. Develop overhead rates per direct manufacturing labor-hour for machining and assembly. Allocate the costs of the support departments in the order given in this problem. Use the allocation base for each support department you think is most appropriate 2. Using the direct method, rework requirement 1. 3. Based on the following information about two jobs, determine the total overhead costs for each job by using rates developed in (a) requirement 1 and (b) requirement 2 4. The company evaluates the performance of the operating department managers on the basis of how well they managed their total costs, including allocated costs. As the manager of the Machining Department, which allocation method would you prefer from the results obtained in requirements 1 and 2? Explain. Print Done