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Direct Method

Engineering

Overhead Budget before allocations 363500

Services Provided by:

Engineering

Salaries

Percentage

llocation !363500

Materials

"abor #ours

Percentage

llocation

$otal llocation

ctivity Driver

Overhead %ate

Ste& Method

'f Engineering is the (a)or service de&art(ent:

Engineering

Overhead Budget before allocations 363500

Services Provided by:

Engineering

Salaries

Percentage

llocation !363500

Materials

"abor #ours

Percentage

llocation

$otal llocation

ctivity Driver

Overhead %ate

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Ste& Method

'f Materials is the (a)or service de&art(ent:

Engineering

Overhead Budget before allocations 363500

Services Provided by:

Engineering

Salaries

Percentage

llocation !3*36+5

Materials

"abor #ours ,00

Percentage 0-.llocation 30.+5

$otal llocation

ctivity Driver

Overhead %ate

%eci&rocal (ethod

llocation of Engineering cost for ccounting: ,00/,00010-.000 or .02

llocation of ccounting cost for Engineering: 36000/.+000010-3000 or 302Engineering ost1 E136350040-.000 Euation .7

ccounting ost1 1 30.+5040-3000E Euation +7

Put Euation . into Euation +:

1 30.+504 0-300036350040-.0007

1 30.+504 .0*05040-0300

0-*8001 ,.0300

1 ,++*9*-6*

E1 ,058*9-*8

%eci&rocal (ethod

Engineering

Overhead Budget before allocations 363500

Services Provided by:

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Engineering

Salaries

Percentage

llocation !,058*9-*8

Materials

"abor #ours ,00

Percentage 0-.

llocation ,++*9-*6*

$otal llocation !

ctivity Driver

Overhead %ate

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Su&&ort De&art(ents O&erating De&art(ents

ccounting Machining sse(bly $otal Budget

30.+50 336000 +3,000 .+3,850

60000 +,000 9,000

0-8.,+958.,3 0-+958.,+958 .

+5*6,+-958. .03958-.,+*

900 +900 3600

0-++++++++++ 0-8888888889 .

!30.+50 66*,,-,,,,, +3,305-5556

66+598-30.5, 58+.6+-6*95 .+3,850

.0000 +0000

66-+59830.5, +9-609.3,*+5

Su&&ort De&art(ents O&erating De&art(ents

ccounting Machining sse(bly $otal Budget

30.+50 336000 +3,000 .+3,850

36000 60000 +,000 .+0000

0-3 0-5 0-+ .

.0*050 .9.850 8+800

900 +900 3600

0-++++++++++ 0-8888888889 .

!,.0300 *..88-88889 3.*.++-++++

609*+8-88889 6+59++-++++ .+3,850

.0000 +0000

60-9*+888889 3.-+*......

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Su&&ort De&art(ents O&erating De&art(ents

ccounting Machining sse(bly $otal Budget

30.+50 336000 +3,000 .+3,850

60000 +,000 9,000

0-8.,+958.,3 0-+958.,+958 .

+9..60-8.,3 ..+,6,-+958

900 +900 ,000

0-+ 0-8 .!30.+50 60+50 +.0985

688,.0-8.,3 55833*-+958 .+3,850

.0000 +0000

68-8,.08.,3 +8-966*6,+95

Su&&ort De&art(ents O&erating De&art(ents

ccounting Machining sse(bly $otal Budget

30.+50 336000 +3,000 .+3,850

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36000 60000 +,000 .+0000

0-3 0-5 0-+ 0-8

.+.83*-6*. +0+9**-,95 9..5*-8*,

900 +900 ,000

0-+ 0-8 0-*

!,++*9*-6* 9,5*8-*39 +*60*+-893

! 6+3,*8-,+3 6..+5+-588 .+3,850

.0000 +0000

6+-3,*8,+3 30-56+6+995