The Following Data on Overhead Apply to the Acme Manufacturing

question 77

Essay

The following data on overhead apply to the Acme Manufacturing Company that manufactures frames for large trucks in three production departments (J-122, J-123, and J-125). There are two service departments, the Human Resources Department and the Facilities Department. *Allocated on the basis of hours of usage in the HR department.
**Allocated on the basis of floor space.
Required:
Using hours as the application base for the Human Resources Department and square feet of floor space for the Facilities Department, apply overhead from these service departments to the production departments, using the following two methods. Calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar.
(1) Direct method.
(2) Step method (assume the human resources department is allocated first).