Other information:
Setup costs 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: Trophies Plaques
Forming department 40 116
Assembly department 43 103 Supervision costs vary with direct labor costs in each department. 1. Calculate the budgeted cost of trophies and plaques based on a single plant-wide overhead rate, if total overhead is allocated based on total direct costs.
2. Calculate the budgeted cost of trophies and plaques based on department overhead rates, where forming department overhead costs are allocated based on direct labor costs of the forming department , and assembly department overhead costs are allocated based on total direct costs of the assembly department.
3. Calculate the budgeted cost of trophies and plaques if Tarquin allocated overhead costs in each department using activity-based costing.
4. Explain how the disaggregation of information could improve or reduce decision quality.
Overhead rate = Total overhead 56,346 0.712113744 Total Direct costs $79,125 Tarquin's Trophies
Budgeted Information
For the Year Ended November 30, 2011
Forming Department Trophies Plaques Total
Direct materials $13,000 $11,250 $24,250
Direct labor 15,600 9,000 24,600
Overhead Costs Setup 12,000 Supervision 10,386
Allocated overhead 20,366 14,420 Assembly Department Trophies Plaques Total
Direct materials $2,600 $9,375 $11,975
Direct labor 7,800 10,500 18,300
Overhead Costs Setup 23,000 Supervision 10,960
Allocated overhead 7,406 14,153 Recap of total costs Trophies Plaques Total
Direct materials $15,600 $20,625 $36,225
Direct