Charlie Manufacturing Company has two production departments, Melting and Molding. Direct general plant management and plant security costs benefit both production departments. Charlie allocates general plant management costs on the basis of the number of production employees and plant security costs on the basis of space occupied by the production departments. In November, the following overhead costs were recorded:
Melting Department direct overhead $350,000
Molding Department direct overhead 600,000
General plant management 180,000
Plant security 70,000
Melting Molding
Number of employees 50 90
Space occupied (square feet) 20,000 80,000
Machine hours 10,000 2,000
Direct labor hours 4,000 20,000
Required:
Prepare a schedule allocating general plant management costs and plant security costs to the Melting and Molding Departments.
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Charlie Manufacturing Company has two production departments, Melting and Molding. Direct general pl...
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