Assignment 2

You have the following information related to production and services centers
ABC factory during 2021.
Production centers Services centers
A B C S1 S2 S3
Total manufacturing 50,000 28,000 15,000 44,000 80,000 60,000
overhead cost
Allocate S1 8 7 5 - - 4

Allocate S2 8 5 2 1 - 4
Allocate S3 8 4 2 - - -
No. of D.L. hours 18,250 17,200 7,500
No. of machine hours 20,000 16,000 15,000
Required:
1. Calculate the total manufacturing overhead cost for each production center
using Step-Down method.
2. Calculate the manufacturing overhead cost rate for each production Center
assuming that A and B according to DL hours and center C according to
machine hours.
3. If job 666 has $8,000 direct material and $10,000 direct labor. And it has 100
DLH in A, 150 DLH in B and 200 MH in C. calculate the total cost for this
job.