The following situations provide practice in allocating monthly overhead expenses at a central office. From the information given in the following table, complete the allocations indicated in the problem. Remember: Answers for the following problem should sum to the total monthly overhead expense.
| Monthly Overhead | Total | Location | |||||
| Expense | Expense | Basis of Allocation | East | West | North | South | TOTAL |
| Insurance | $20,000 | Square feet | 19,200 | 9,600 | 14,400 | 16,800 | 60,000 |
| Utilities | 25,000 | Machine hours worked | 38,950 | 14,250 | 31,350 | 10,450 | 95,000 |
| Rent | 26,000 | Units produced | 10,200 | 7,800 | 5,700 | 6,300 | 30,000 |
| Maintenance | 22,000 | Number of employees | 105 | 75 | 30 | 90 | 300 |
Allocate utilities expense based on the number of machine hours worked in each location.
East
West
North
South
Check
| Ans. | Insurance | utilities | Rent | Maintenance | |
| East | 6,400 | 10,250 | 8,840 | 7,700 | |
| West | 3,200 | 3,750 | 6,760 | 5,500 | |
| North | 4,800 | 8,250 | 4,940 | 2,200 | |
| South | 5,600 | 2,750 | 5,460 | 6,600 | |
| Total | $ 20,000 | $ 25,000 | $ 26,000 | $ 22,000 |
The following situations provide practice in allocating monthly overhead expenses at a central office. From the...
Radakovich Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Total Cost Total Activity Assembly $ 1,443,140 59,000 machine-hours Processing orders $ 80,905 2,750 orders Inspection $ 145,733 1,910 inspection-hours The company makes 890 units of product F60N a year, requiring a total of 2,070 machine-hours, 41 orders, and 35 inspection-hours per year. The product's direct materials cost is $56.46 per unit and its direct labor cost is $22.67 per unit. The product sells for...