A company has two supporting departments, Maintenance and Information

1.During FY 2016, Alpha Company recorded total of factory overhead
May 5, 2020
At fiscal year end, December 31, 2018, Somerset Corporation
May 5, 2020

A company has two supporting departments, Maintenance and Information

Systems, and two operating departments, the Machining Department and the Assembly Department. Each department’s overhead costs are shown below.

Information

Overhead costs
$6,300,000
$1,452,150
$4,000,000
$2,000,000
Maintenance hours

4,000
6,000
10,000
Information Systems hours
500

4,000
500

-Using the step-down method, the total overhead costs allocated to each operating department are Machining
-Assembly


– A.
– $8,187,025
-$5,565,125

– B.
– $7,653,300
-$6,098,850

– C.
– $5,451,350
-$8,300,800

– D.
– $8,300,800
-$5,451,350

 
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