Adidas Inc. is exploring ways to allocate the cost of service departments such as Quality control and Maintenance to the production departments such as Machining and assembly. The controller of the company has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P300,000 P1,250,000 Budgeted machine hours - - 50,000 hrs - 50,000 hrs Budgeted direct labor hours - - - 25,000 hrs 25,000 hrs Budgeted hours of service of quality control - 7,000 hrs 21,000 hrs 7,000 hrs 35,000 hrs Budgeted hours of service maintenance 10,000 hrs - 18,000 hrs 12,000 hrs 40,000 hrs Under the reciprocal method of allocating service department costs, what are the total amount of quality control costs and total amount of maintenance costs, respectively, to be allocated to the other departments? a. 421,053 and 284,211 b. 435,201 and 290,640 c. 410,250 and 282,050 d. 435,800 and 287,160
Adidas Inc. is exploring ways to allocate the cost of service departments such as Quality control and Maintenance to the production departments such as Machining and assembly. The controller of the company has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P300,000 P1,250,000 Budgeted machine hours - - 50,000 hrs - 50,000 hrs Budgeted direct labor hours - - - 25,000 hrs 25,000 hrs Budgeted hours of service of quality control - 7,000 hrs 21,000 hrs 7,000 hrs 35,000 hrs Budgeted hours of service maintenance 10,000 hrs - 18,000 hrs 12,000 hrs 40,000 hrs Under the reciprocal method of allocating service department costs, what are the total amount of quality control costs and total amount of maintenance costs, respectively, to be allocated to the other departments? a. 421,053 and 284,211 b. 435,201 and 290,640 c. 410,250 and 282,050 d. 435,800 and 287,160
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