A company has a processing department with 10 stations. Because of the nature and use of...
A company has a processing department with 10 stations. Because of the nature and use of three of these stations, each is considered a separate cost center for IDC allocation. The remaining seven are grouped as one cost center, CC 190. Operating hours are used as the allocation basis for all stations. A total of $243,000 is allocated to the department for next year. Use the data collected this year to determine the indirect cost (IDC) rate for each center.
| Cost Center | IDC Allocated | Operating Hours |
| CC 100 | $25,000 | 800 |
| CC 110 | $43,000 | 200 |
| CC 120 | $75,000 | 1200 |
| CC 190 | $100,000 | 1630 |
The IDC rate for CC 100 is $ per hour.
The IDC rate for CC 110 is $ _____ per hour.
The IDC rate for CC 120 is $ _____ per hour.
The IDC rate for CC 190 is $ _____ per hour.
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A company has a processing department with 10 stations. Because
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Company has prepared department overhead budgets for
budgeted-volume levels before allocations as follows:
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:
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Building and grounds
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