Determine the total cost allocation and departmental

Reference no: EM13574148

Torrence Company has two support departments (Administration and Janitorial) and three producing departments (Fabricating, Assembly, and Finishing). Costs and activities are as follows:

Administration Janitorial Fabricating Assembly Finishing

Direct costs......................... $50,000 $30,000 $40,000 $50,000 $25,000

Number of employees........ 10 30 40 20

Square feet......................... 2,000 10,000 28,000 15,000

Direct labor hours............... 5,000 6,000 2,000

Administrative services are allocated based on the number of employees; janitorial services are allocated based on square footage. Overhead rates for the three producing departments are based on direct labor hours.

Determine the total cost allocation and departmental overhead rate for the producing departments using the direct method. Show your work.
Determine the total cost allocation and departmental overhead rate for the producing departments using the step-down method. Show your work.

Reference no: EM13574148

Questions Cloud

Journalize the adjusting entries and label them as accruals : journalize the adjusting entries and label them as accruals or deferrals adding accounts as needed.a. unexpired

Calculate the diameter of a medium carbon steel pin in : calculate the diameter of a medium carbon steel pin in double shear subjected to a suddenly applied shearing force of

Under what circumstances is a contingent liability : what is a contingent liability? give an example of a contingent liability that is usually recorded in the

Nearly all companies confront loss contingencies of various : nearly all companies confront loss contingencies of various forms.requireda. describe what conditions must be met for a

Determine the total cost allocation and departmental : torrence company has two support departments administration and janitorial and three producing departments fabricating

A steel ring of mean diameter 250 mm has a square section : a steel ring of mean diameter 250 mm has a square section 2.5 mm by 2.5 mm. it is split by a narrow radial saw cut. the

Capital stock is a major part of a corporations equity the : capital stock is a major part of a corporations equity. the term capital stock embraces both common and preferred

How can a forward contract on a stock with a particular : how can a forward contract on a stock with a particular delivery price and delivery date be created from

Pizza restaurant operations are cash sensitive and in some : pizza restaurant operations are cash sensitive and in some cases employees can remove currency from the register

User Account

All Pages