Reference no: EM132540432

The Wallaby Company has two support departments and two producing departments. Information for each department for the year is as follows:

                                                        Support Departments                             Producing Departments

                                             Administration         Maintenance            Molding                  Assembly

Budgeted overhead               $80,000                     $120,000            $460,000             $540,000

Direct labor hours                500                              2,000                     25,000            32,000

Square meter occupied           200                           300                         2,500              10,000

Machine hours                         -                             500                      9,600             14,400

• The company does not divide costs into fixed and variable components.
• Plant administration costs are allocated based on square meter occupied, and factory maintenance costs are allocated based on machine hours.
• Predetermined overhead rates for the producing departments are based on direct labor hours.

Required: (All answers should be supported by calculations; round to two decimal places)

Question 1: If the cost allocation is based on stepdown method starting with Administration, after the allocation, the total overhead cost of Molding and Assembly departments are:

Question 2: Based on your calculation at (1), the Calculate the predetermined overhead rate for the producing departments are