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Kamron's Supply, Inc. provides cleaning supplies to the automobile detailing industry. It has two support...

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Accounting

Kamron's Supply, Inc. provides cleaning supplies to the automobile detailing industry. It has two support departments providing support and operating functions. Support functions departments are engineering and materials management. Operating departments are machining and assembly.

Required information:

  1. Compute the single-rate method.
  2. Compute the dual-rate method.
  3. Compute the supply-of-capacity method.

Kamron's Supply, Inc.: Material Management Department Practical capacity 4,500 hours Fixed costs of the materials services department 500,000 4,000 labor hours to 5,000 labor hours range Budgeted usage (qty) of materials management labor hours required to support the departments: Machining Department 1,800 hours Assembly Department 2,200 hours Total 4,000 hours Budgeted variable cost per materials handling labor hours in the 4,000 labor-hour to 5,000 labor-hour range 35 per hour used Actual usage (qty) of materials management labor hours required to support Machining Department 1,400 hours Assembly Department 2,300 hours Total 3,700 hours

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