Question Content Area Bower Company manufactures a product in a factory that has two producing...
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Accounting
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Bower Company manufactures a product in a factory that has two producing departments, Cutting and Stitching, and two support departments, D1 and D2. The activity driver for D1 is the number of employees, and the activity driver for D2 is the number of machine hours. The following data pertain to Bower:
Support Departments
Producing Departments
D1
D2
Cutting
Stitching
Direct costs
$210,000
$165,000
$130,000
$78,500
Normal activity:
Number of employees
-
40
80
170
Machine hours
800
-
15,000
5,000
Required:
A. Calculate the cost assignment ratios to be used under the direct method for D1 and D2. Round your answers to two decimal places.
D1
D2
Cutting
fill in the blank 1
fill in the blank 2
Stitching
fill in the blank 3
fill in the blank 4
B. Allocate the support department costs to the producing departments by using the direct method. If an amount box does not require an entry, leave it blank or enter "0". Enter all amounts as positive numbers.
Support Departments
Producing Departments
D1
D2
Cutting
Stitching
Direct costs
$210,000
$165,000
$130,000
$78,500
Allocate D1
fill in the blank 5
fill in the blank 6
fill in the blank 7
fill in the blank 8
Allocate D2
fill in the blank 9
fill in the blank 10
fill in the blank 11
fill in the blank 12
Total
$fill in the blank 13
$fill in the blank 14
$fill in the blank 15
$fill in the blank 16
Answer & Explanation
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