QUESTION 37Cost AccountingChoose the answer from the choices The managers of GB Inc. are discussing ways to allocate the cost-of-service departments suchas: Quality Control and Maintenance to the production departments. To aid them in thisdiscussion, the controller has provided the following information (SEE PICTURE BELOW):If GB uses the reciprocal method of allocating service costs, the total amount of quality controlcosts (rounded to the nearest amount) to be allocated to the other departments would be: *BudgetedMaintenance Machining AssemblyTotalQualityControlOverheadcosts beforeallocationMachineP 350,000 P 200,000P 400,000 P 300,000P 1,250,000hours50,00050,000Direct laborhoursHrs.25,00025,000ofservices:Quality7,0007,00012,00035,00040,000control21,000Maintenance 10,00018,000O P 284,211O P 336,842O P 350,000O P 421,053

Working : The reciprocal method requires the usage of two formulas that are supported the entire…

as: Quality Control and Maintenance to the production departments. To aid them in this discussion, the controller has provided the following information (SEE PICTURE BELOW): If GB uses the reciprocal method of allocating service costs, the total amount of quality co costs (rounded to the nearest amount) to be allocated to the other departments would be

as: Quality Control and Maintenance to the production departments. To aid them in this discussion, the controller has provided the following information (SEE PICTURE BELOW): If GB uses the reciprocal method of allocating service costs, the total amount of quality co costs (rounded to the nearest amount) to be allocated to the other departments would be

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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