Kumar Company has two Producing Departments and two Support Centers. The following budgeted data...

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Kumar Company has two Producing Departments and two Support Centers. The following budgeted data pertain to these four departments:  	 		 			 			Support Departments 			Producing Departments 		 		 			 			Maintenance 			Personnel 			Assembly 			Painting 		 		 			Overhead 			$2,00,000 			$60,000 			$43,000 			$74,000 		 		 			Square Footage 			- 			2,700 			5,400 			5,400 		 		 			No. of employees 			30 			- 			72 			198 		 		 			Direct labour hours 			- 			- 			25,000 			40,000 		 	  Required:  	Allocate the Overhead Costs of the Support Departments to the Producing Departments using the Direct Method. Explain with reasoning the basis on which allocation has been done. 	Using Direct labour Hours compute departmental Overhead rates for the two Producing Departments. 
	
Document Preview: Kumar Company has two Producing Departments and two Support Centers. The following budgeted data pertain to these four departments:Support DepartmentsProducing DepartmentsMaintenancePersonnelAssemblyPaintingOverhead$2,00,000$60,000$43,000$74,000Square Footage-2,7005,4005,400No. of employees30-72198Direct labour hours--25,00040,000Required:Allocate the Overhead Costs of the Support Departments to the Producing Departments using the Direct Method. Explain with reasoning the basis on which allocation has been done.Using Direct labour Hours compute departmental Overhead rates for the two Producing Departments.

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Kumar Company has two Producing Departments and two Support Centers. The following budgeted 
data pertain to these four departments: 
 Support Departments Producing Departments 
 Maintenance Personnel Assembly Painting 
Overhead $2,00,000 $60,000 $43,000 $74,000 
Square Footage - 2,700 5,400 5,400 
No. of employees 30 - 72 198 
Direct labour hours - - 25,000 40,000
Required: 
1.

Kumar Company has two Producing Departments and two Support Centers. The following budgeted data pertain to these four departments: Support Departments Producing Departments Maintenance Personnel...

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Support Departments	Producing Departments
Maintenance	Personnel	Assembly	Painting
Overhead	$2,00,000	$60,000	$43,000	$74,000
Square Footage	-	2,700	5,400	5,400
No. of employees	30	-	72	198
Direct labour hours	-	-	25,000	40,000