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Reciprocal Method Eilers Company has two producing departments and two support departments. The following budgeted...

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Accounting

Reciprocal Method

Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:

Support Departments Producing Departments
General Factory Receiving Assembly Finishing
Direct overhead $400,000 $170,000 $42,000 $71,000
Square footage 2,700 5,400 5,400
Number of receiving orders 300 1,680 1,020
Direct labor hours 25,000 40,000

Required:

1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".)

Allocation ratios:

General Factory Receiving Assembly Finishing
Square footage ? ? ? ?
Number of receiving orders ? ? ? ?

Allocations:

General Factory Receiving Assembly Finishing
Direct overhead cost $? $? $ ? $?
General Factory ? ? ? ?
Receiving ? ? ? ?
Total $? $? $? $?

2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)

Overhead Rate
Assembly $. ? per direct labor hour
Finishing $. ? per direct labor hour

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