Reference no: EM132540424
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 a. If the cost allocation is based on direct method, after the allocation, the total overhead of Molding and Assembly departments are: