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"This is really an odd situation." said Jim Carter general manager of Highland Publishing Company. We get most of the jobs we bid on that require a lot of press time in the Printing Department yet profits on those jobs are never as high as they ought to be. On the other hand, we lose most of the jobs we bid on that require a lot of time in the Binding Department I would be inclined to think that the problem is with our overhead rates, but we're stready computing separate Overhead rates for each department. So what we could be wrong? Highland Publishing Company is a large organization that offers a variety of printing and bring work. The Printing and Binding departments are supported by three service departments. The costs of these service departments are located to other departments in the order isted below. The Personnel cost is located based on number of employees. The custodia Services cost is located based on square feet of space occupied and the Maintenance cost is allocated based on machine hours Roots Depan Personel Codial Services Maintenance Printing Binding Total Labor square feet of Space Desple 16,00 12,100 8.000 1.200 14,500 10.16 30.200 4,200 104. 20,000 17200 16,300 er of play 24 45 4 101 306 540 249.000 63,00 110. 15.000 31.000 16.000 Budgeted overhead costs in each department for the current year are shown below Tersonnel Custod services Hainence wa 310,000 65.000 33,400 419,000 167,600 Total budgeted cost Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. The compute predetermined overhead rates in the two operating departments. Use machine hours as the location base in the Printing Department and direct labor-hours as the allocation base in the Binding Department 2. Repeat above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments 3. Assume that during the current year the company bids on a job that requires machine and aborme as follows Printing Depar, 300 Di Depan 200 Direct Laborare 4.300 13.360 10.00 a. Determine the amount of overhead cost that would be assigned to the job the company used the overhead rates developed in above. Then determine the amount of overhead cost that would be assigned to the job the company used the overhead rates developed in above Complete this question by entering your answers in the tabs below. Res2 RA eing the step-down method ocate the service department costs to the content. The computer overhead in the two operating departments. Use machine has the con the Department and are hours at the location is in the Binding Department 3 3100005 Ae 33.000 1800 problem is with our overhead rates, but we're already computing separate overhead rates for each department. So what else could be wrong?" Highland Publishing Company is a large organization that offers a variety of printing and binding work. The Printing and Binding departments are supported by three service departments. The costs of these service departments are located to other departments in the order listed below. The Personnel cost is located based on number of employees. The custodia Services cost is located based on square feet of space occupied and the Maintenance cost is allocated based on machine hours Tol Laborare To Wire Det Heute Berpied play Personnel 16.100 12.100 24 Custodial Services #.000 3,200 45 14,500 10.00 64 This 30,200 40,260 101 169.001 15.100 Binding 104.000 20.000 306 71.000 17,600 6.100 500 210.000 Budgeted overhead costs in each department for the current year are shown below Personne Custodial Services Maintenan Printi Binding Total budgeted cost 1910,000 65.000 9,40 419.000 167.000 $11054.400 Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments Required: 1 Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the allocation base in the Binding Department. 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments 3. Assume that during the current year the company bids on a job that requires machine and labor time as follows: Direct Machine-Boss Lahore Printing Department 2,200 1.200 hinding Department 700 13.30 Total hours 2,100 a. Determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in above. Then determine the amount of overhead cost that would be assigned to the job in the company used the overhead rates developed in (2) above. Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Reg Repeat requirement 1 above, this tine using the direct method. Again compute predetermined over the end finding departments (etenter location from a department as negative and allocate a potent should add su to zero. Do not found intermediate calculations founded over the answers to the nearest whole dollar amount.) Cust Servis 65.000 1 310.000 93.600 419.000 3 0210.000) Department cow before locations Allocation Personnel Culorice cost Maintenance Tolosario Pred overade 65.000 3.490 problem is with our overhead rates, but we're already computing separate overhead rates for each department So what could be wrong Highland Publishing Company is a large organization that offers a variety of printing and binding work. The Printing and Binding departments are supported by the service departments. The costs of these service departments are located to other departments in the order listed below. The Personnel cost is allocated based on number of employees. The custod Services cost is located based on square feet of space occupied and the Maintenance cost is allocated based on machine hours Total Laborar Teet of here Department Ople Personnel 16.900 12.100 24 Custodia Services 8.000 1,200 45 Maintenance 14,500 10,00 64 Printing 30,200 40.30 101 169.000 15.000 Binding 104.000 20.000 306 85.000 173.600 210.000 15.000 540 Budgeted overhead costs in each department for the current year are shown below RE Cated services Maintenance PELLI Siding Total budgeted cost 3 330,000 45,000 93,40 429,000 167.00 13.054,400 Because of its simplicay, the company has always used the direct method to allocate serdice department costs to the two operating departments Required: 1. Using the step down method, allocate e service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments Use machine hours as the location base in the Printing Department and direct labor hours as the allocation base in the Binding Department 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments 3. Assume that during the current year the company bids on a job that requires machine and labor time as follows: DER Machine 2.200 3,200 700 13,30 14,500 Printing Department and Department Total here . Determine the amount of overhead cost that would be assigned to the job the company used the overhead rates developed in above. Then determine the amount of overhead cost that would be assigned to the job if the company used the overeed rates developed in (2) above. Complete this question by entering your answers in the tabs below. Ree1 RG 2 Reg Determine the amount of overhead cost that would be assigned to the job if the comed the overhead notes developed tn requirement 1 above. Then determine the amount of overhead coat that would be med to the job the company used the overhead rates developed in requirement. (Round your intermediate cautions to come and we to the rest whole dar amount.) Tube Orte Ce Step down med method (R2 "This is really an odd situation." said Jim Carter general manager of Highland Publishing Company. We get most of the jobs we bid on that require a lot of press time in the Printing Department yet profits on those jobs are never as high as they ought to be. On the other hand, we lose most of the jobs we bid on that require a lot of time in the Binding Department I would be inclined to think that the problem is with our overhead rates, but we're stready computing separate Overhead rates for each department. So what we could be wrong? Highland Publishing Company is a large organization that offers a variety of printing and bring work. The Printing and Binding departments are supported by three service departments. The costs of these service departments are located to other departments in the order isted below. The Personnel cost is located based on number of employees. The custodia Services cost is located based on square feet of space occupied and the Maintenance cost is allocated based on machine hours Roots Depan Personel Codial Services Maintenance Printing Binding Total Labor square feet of Space Desple 16,00 12,100 8.000 1.200 14,500 10.16 30.200 4,200 104. 20,000 17200 16,300 er of play 24 45 4 101 306 540 249.000 63,00 110. 15.000 31.000 16.000 Budgeted overhead costs in each department for the current year are shown below Tersonnel Custod services Hainence wa 310,000 65.000 33,400 419,000 167,600 Total budgeted cost Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. The compute predetermined overhead rates in the two operating departments. Use machine hours as the location base in the Printing Department and direct labor-hours as the allocation base in the Binding Department 2. Repeat above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments 3. Assume that during the current year the company bids on a job that requires machine and aborme as follows Printing Depar, 300 Di Depan 200 Direct Laborare 4.300 13.360 10.00 a. Determine the amount of overhead cost that would be assigned to the job the company used the overhead rates developed in above. Then determine the amount of overhead cost that would be assigned to the job the company used the overhead rates developed in above Complete this question by entering your answers in the tabs below. Res2 RA eing the step-down method ocate the service department costs to the content. The computer overhead in the two operating departments. Use machine has the con the Department and are hours at the location is in the Binding Department 3 3100005 Ae 33.000 1800 problem is with our overhead rates, but we're already computing separate overhead rates for each department. So what else could be wrong?" Highland Publishing Company is a large organization that offers a variety of printing and binding work. The Printing and Binding departments are supported by three service departments. The costs of these service departments are located to other departments in the order listed below. The Personnel cost is located based on number of employees. The custodia Services cost is located based on square feet of space occupied and the Maintenance cost is allocated based on machine hours Tol Laborare To Wire Det Heute Berpied play Personnel 16.100 12.100 24 Custodial Services #.000 3,200 45 14,500 10.00 64 This 30,200 40,260 101 169.001 15.100 Binding 104.000 20.000 306 71.000 17,600 6.100 500 210.000 Budgeted overhead costs in each department for the current year are shown below Personne Custodial Services Maintenan Printi Binding Total budgeted cost 1910,000 65.000 9,40 419.000 167.000 $11054.400 Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments Required: 1 Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the allocation base in the Binding Department. 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments 3. Assume that during the current year the company bids on a job that requires machine and labor time as follows: Direct Machine-Boss Lahore Printing Department 2,200 1.200 hinding Department 700 13.30 Total hours 2,100 a. Determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in above. Then determine the amount of overhead cost that would be assigned to the job in the company used the overhead rates developed in (2) above. Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Reg Repeat requirement 1 above, this tine using the direct method. Again compute predetermined over the end finding departments (etenter location from a department as negative and allocate a potent should add su to zero. Do not found intermediate calculations founded over the answers to the nearest whole dollar amount.) Cust Servis 65.000 1 310.000 93.600 419.000 3 0210.000) Department cow before locations Allocation Personnel Culorice cost Maintenance Tolosario Pred overade 65.000 3.490 problem is with our overhead rates, but we're already computing separate overhead rates for each department So what could be wrong Highland Publishing Company is a large organization that offers a variety of printing and binding work. The Printing and Binding departments are supported by the service departments. The costs of these service departments are located to other departments in the order listed below. The Personnel cost is allocated based on number of employees. The custod Services cost is located based on square feet of space occupied and the Maintenance cost is allocated based on machine hours Total Laborar Teet of here Department Ople Personnel 16.900 12.100 24 Custodia Services 8.000 1,200 45 Maintenance 14,500 10,00 64 Printing 30,200 40.30 101 169.000 15.000 Binding 104.000 20.000 306 85.000 173.600 210.000 15.000 540 Budgeted overhead costs in each department for the current year are shown below RE Cated services Maintenance PELLI Siding Total budgeted cost 3 330,000 45,000 93,40 429,000 167.00 13.054,400 Because of its simplicay, the company has always used the direct method to allocate serdice department costs to the two operating departments Required: 1. Using the step down method, allocate e service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments Use machine hours as the location base in the Printing Department and direct labor hours as the allocation base in the Binding Department 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments 3. Assume that during the current year the company bids on a job that requires machine and labor time as follows: DER Machine 2.200 3,200 700 13,30 14,500 Printing Department and Department Total here . Determine the amount of overhead cost that would be assigned to the job the company used the overhead rates developed in above. Then determine the amount of overhead cost that would be assigned to the job if the company used the overeed rates developed in (2) above. Complete this question by entering your answers in the tabs below. Ree1 RG 2 Reg Determine the amount of overhead cost that would be assigned to the job if the comed the overhead notes developed tn requirement 1 above. Then determine the amount of overhead coat that would be med to the job the company used the overhead rates developed in requirement. (Round your intermediate cautions to come and we to the rest whole dar amount.) Tube Orte Ce Step down med method (R2