Indirect Cost Allocation-Direct Method

Indirect Cost Allocation: Direct MethodSprint Manufacturing Company has two production departments, Melting and Molding. Direct general plant management and plant security costs benefit both production departments. Sprint 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$140,000Molding Department direct overhead300,000General plant management100,000Plant security25,000Other pertinent data follow:Number of employees4050Space occupied (square feet)10,00040,000Machine hours10,0002,000Direct labor hours4,00020,000(a) Prepare a schedule allocating general plant management costs and plant security costs to the Melting and Molding Departments.General Plant Management$Answer$Answer$AnswerPlant security$Answer$Answer$Answer(b) Determine the total departmental overhead costs for the Melting and Molding Departments.Melting $AnswerMolding $Answer(c) Assuming the Melting Department uses machine hours and the Molding Department uses direct labor hours to apply overhead to production, calculate the overhead rate for each production department. (Round your answers to two decimal places.)Melting $AnswerMolding $Answer