申論題

三、25%
 Solar Corporation manufactures plastic chairs and tables and operates at capacity. The controller has asked you to compare plant-wide, department, and activity-based cost allocation.
 Solar Corporation’s budgeted manufacturing costs for 2018 are given in the following tables.

 Other information follows:
Setup costs in each department vary with the number of batches processed in each department. The budgeted number of batches for each product line in each department is as follows:
 Supervision costs in each department vary with direct manufacturing labor costs in each department.
Required:

2. Calculate the budgeted costs of chairs and tables based on departmental overhead rates, where forming department overhead costs are allocated based on total direct costs of the forming department and finishing department overhead costs are allocated based on direct labor costs of the finishing department.