Business, 30.03.2021 16:20 YariDelOrbeez115

Lithium Company has two support departments, the Maintenance Department and the Security Department, and two producing departments, Molding and Finishing. Standard service hours used by the departments is considered the basis to allocate Maintenance Department costs of $40,000 and the number of employees in each department is considered the basis to allocate Security Department costs of $24,000. The direct costs of the Molding Department and the Finishing Department are $96,000 and $105,000, respectively. Data on standard service hours and number of employees are as follows: Maintenance Dept Security Dept Molding Dept Finishing Dept

Standard service hours used 200 100 850 1,150
Number of employees 15 20 450 350
Direct labor hours 100 50 1,150 1,350

Required:
Calculate the total overhead costs associated with the Molding Department after allocating the Maintenance and Personnel Department costs using the direct method.

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Lithium Company has two support departments, the Maintenance Department and the Security Department,...

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