but before allocation to the Engineering and Production DepartmentChapter 1254ManfacNumbNumbers 10 to 21 are based on the following data:13. Iannualdepartments to the producing departments on the basieavailable:service cost allocation basis. The following data wasProducing DepartmentsDept. AService DepartmentsMaintenance Engineering400Dept. BDept. C800800P80,000200400P90,00014. L200400P50,000Maintenance hours400Engineering hoursOverhead costsP12,000P54,00010. Using the simultaneous equations (reciprocal method), what woulabe the total Engineering Department cost after allocation finterservice department costs, but before allocation to theMaintenance and Production Departments?15.a. P12,000b. Р54,000с. Р57,000d. P60,00011. Assume that the Engineering Department's total costs to be allocatedis P60,000, how much of this costs is allocated to Department A, Band C under the reciprocal method.16.a. Р48,000b. P54,000с. Р60,000d. P66,00012. Using the reciprocal method, what would be the total MaintenanDepartment cost after allocation of interservice department cbut before allocation to the Engineering and Production Depart17.a. P24,000b. P22,500c. P12,000d. P28,000

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Answered: 10. Using the simultaneous equations…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Chapter) 254 Numbers 10 to 21 are based on the following data: service annual departments to the producing departments on the baside available: better that maintenance and engineering service hours be used service cost allocation basis. The following data was Producing Departments Dept. B Service Departments Dept. A Dept. C Maintenance Engineering 400 Maintenance hours Engineering hours Overhead costs 800 800 200 400 P90,000 200 400 P50,000 400 P80,000 P54,000 P12,000 p0ol method) whot
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Identify under or over allocation from the following information :i. Actual Overhead tk 2,000, allocated overhead tk 1,500ii. Allocated Overhead 6,000 ,actual overhead 5,200iii. Actual Overhead 10,000, allocated overhead tk 18,000
i.3
Which one of the following is not a step in allocating the support department cost to the production department? Select one: a. Trace all the overhead cost b. Divide the departments in to support and producing departments c. Undertake a breakeven analysis d. Divide the company in departments
AI Rawabi company consist of two support departments (Administration and R& D) and two operating departments (Manufacturing & Assembling). The cost of Administration department is allocated based on number of employees and the cost of R& D department is allocated based on research hours. The table below shows the cost details. Allocate the cost of the support departments to the operating departments using step-down method. How much is the Assembling department total cost after cost allocation: Support Departments Operating Departments R&D Manufacturing Assembling Total Cost Admin Cost: Salaries 30000 60000 44000 70000 204000 Supplies 10000 30000 25000 30000 95000 Total 40000 90000 69000 100000 299000 Allocation Base: Research Hours 200 300 450 250 Number of Employees 7 10 9 13 Select one: O a. RO 155775 O b. RO 162090.3 O c. RO 143225 O d. 136909.7
Dengo Company makes a trail mix in two departments: Roasting and Blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. October data for the Roasting department follow. Beginning work in process inventory Units started and completed Units completed and transferred out Ending work in process inventory Beginning work in process inventory Costs added this period Direct materials. Conversion Total costs to account for Units 4,400 20, 600 25,000 3,800 $314, 760 1,374,948 Direct Materials Conversion Percent Percent Complete Complete 100% 30% 100% $ 124,790 1,689, 708 $ 1,814, 498 70%
Part 1: Allocate the costs of the 3 service departments using the direct method. Part 2: Allocate the costs of the 3 service departments using the step method, with the order determined by the greater percentage usage. Part 3: Allocate the costs of the 3 service departments using the reciprical method. Part 4:What is one strength and one drawback of each of the methods?
Subject: Accounting
Which of the following descriptions could be applied to the IT costs in question four? ( previous question) a. Afixedproductionexpenseb. Asemi-variableadministrationoverhead c. A variable direct research expensed. A mixed direct labour distribution cost
Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Esployees Department direct costs a. The order of allocation starts with IT. b. The order of allocation starts with HR. Show Transcribed Text IT From: Service department costs IT 0 HR Total costs 16 $ 156,000 Required: Use the step method to allocate the service costs, using the following: $ HR 1,700 0 $ 266,200 Complete this question by entering your answers in the tabs below. Publishing 1,700 24 Required A Required B Use the step method to allocate the service costs, using the following: The order of allocation starts with IT. Note: Amounts to be deducted should be…

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