A summary of the usage of the service department services by other servic departments as well as by the two producing departments is as follows: Equipment Production Dept. Dept.1 Dept.2 40% Building Service Cost Center Supervision Maintenance Occupancy Supervision Equipment maint. Building occunpany 10% 10% 5% 45% 45% 55% 10% 35% 45% Direct costs in the various departments are as follows: Direct Cost P 35,000 30,000 90,000 350,000 450,000 Label si S2 Department Supervision Equipment maintenance Building occupancy Production Dept. No. 1 Production Dept. No. 2 If the direct method of allocation is used, how much of the supervisic departinent's eost would be ailocated to the building occupancy departmen (Start with Building occupancy, then Supervision) S3 PI P2 а. 0 b. P1,750 с. Р3,500 d. P5,250

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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If the step method of allocation is used, how much would be allocated from
supervision to building occupancy?
а.
b. P1.750
с.
P 2.200
d. P 2,444
Transcribed Image Text:If the step method of allocation is used, how much would be allocated from supervision to building occupancy? а. b. P1.750 с. P 2.200 d. P 2,444
A summary of the usage of the service department services by other service
departments as well as by the two producing departments is as follows:
Equipment
Building
Production Dept.
Service Cost Center Supervision Maintenance Occupancy Dept.1 Dept. 2
Supervision
Equipment maint.
Building occunpany 10%
Direct costs in the various departments are as follows:
10%
5%
40%
45%
45%
55%
10%
35%
45%
Direct Cost
P 35,000
Label
si
S2
Department
Supervision
Équipment maintenance
Building occupancy
Production Dept. No. 1
Production Dept. No. 2
If the direct method of allocation is used, how much of the supervision
departinent's eost would be allocated to the building occupancy department?
(Start with Building occupancy, then Supervision)
30,000
90,000
350,000
450,000
S3
PI
P2
а. 0
b. P1,750
с. Р3,500
d. P5,250
Transcribed Image Text:A summary of the usage of the service department services by other service departments as well as by the two producing departments is as follows: Equipment Building Production Dept. Service Cost Center Supervision Maintenance Occupancy Dept.1 Dept. 2 Supervision Equipment maint. Building occunpany 10% Direct costs in the various departments are as follows: 10% 5% 40% 45% 45% 55% 10% 35% 45% Direct Cost P 35,000 Label si S2 Department Supervision Équipment maintenance Building occupancy Production Dept. No. 1 Production Dept. No. 2 If the direct method of allocation is used, how much of the supervision departinent's eost would be allocated to the building occupancy department? (Start with Building occupancy, then Supervision) 30,000 90,000 350,000 450,000 S3 PI P2 а. 0 b. P1,750 с. Р3,500 d. P5,250
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