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...

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. 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.


2. Using Direct labour Hours compute departmental Overhead rates for the two Producing Departments.

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. 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. 2. Using Direct labour Hours compute departmental Overhead rates for the two Producing Departments.