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Assume that the company uses the reciprocal method in distributing service department costs and that the Packaging department applies factory overhead based on requisitions. How much is the over/(under) applied factory overhead if there are 4,250 requisitions and actual factory overhead incurred by the department was P1,173,398? Indicate overapplied as a positive number, ex. 123456, and underapplied as a number in a parenthesis, ex. (123456). þeang Corporation has two service departments and three producing departments. The following were gathered from their operations: Service Departments P500,000 540,000 Maintenance Storeroom Producing Departments 1,200,000 1,784,000| 872,000 Machinery Assembly Packaging A factory survey revealed the following: Departments Maintenance Number of Direct Requisitions Labor Hours Services Maintenance 400 Storeroom 14% 32% 3,500 6,000 4,100| Machinery 20,000 Assembly 26% 36,000 18,000 Packaging 28% The costs of the maintenance department are allocated on the basis of percent of services rendered while the costs of the Storeroom department are allocated based on number of reguisitions.

Assume that the company uses the reciprocal method in distributing service department costs and that the Packaging department applies factory overhead based on requisitions. How much is the over/(under) applied factory overhead if there are 4,250 requisitions and actual factory overhead incurred by the department was P1,173,398? Indicate overapplied as a positive number, ex. 123456, and underapplied as a number in a parenthesis, ex. (123456). þeang Corporation has two service departments and three producing departments. The following were gathered from their operations: Service Departments P500,000 540,000 Maintenance Storeroom Producing Departments 1,200,000 1,784,000| 872,000 Machinery Assembly Packaging A factory survey revealed the following: Departments Maintenance Number of Direct Requisitions Labor Hours Services Maintenance 400 Storeroom 14% 32% 3,500 6,000 4,100| Machinery 20,000 Assembly 26% 36,000 18,000 Packaging 28% The costs of the maintenance department are allocated on the basis of percent of services rendered while the costs of the Storeroom department are allocated based on number of reguisitions.

FINANCIAL ACCOUNTING
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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Assume that the company uses the reciprocal method in distributing service department costs and that the Packaging department applies factory overhead based on requisitions. How much is the over/(under) applied factory overhead if there are 4,250 requisitions and actual factory overhead incurred by the department was P1,173,398? Indicate overapplied as a positive number, ex. 123456, and underapplied as a number in a parenthesis, ex. (123456). Deang Corporation has two service departments and three producing departments. The following were gathered from their operations: Service Departments P500,000 540,000 Maintenance Storeroom Producing Departments_ 1,200,000 1,784,000| 872,000 Machinery Assembly Packaging A factory survey revealed the following: Departments Maintenance Number of Direct Requisitions Labor Hours Services Maintenance 400 Storeroom 14% 20,000 36,000| 18,000 Machinery 32% 3,500 26% 6,000 4,100| Assembly Packaging 28% The costs of the maintenance department are allocated on the basis of percent of services rendered while the costs of the Storeroom department are allocated based on number of requisitions.
Transcribed Image Text:Assume that the company uses the reciprocal method in distributing service department costs and that the Packaging department applies factory overhead based on requisitions. How much is the over/(under) applied factory overhead if there are 4,250 requisitions and actual factory overhead incurred by the department was P1,173,398? Indicate overapplied as a positive number, ex. 123456, and underapplied as a number in a parenthesis, ex. (123456). Deang Corporation has two service departments and three producing departments. The following were gathered from their operations: Service Departments P500,000 540,000 Maintenance Storeroom Producing Departments_ 1,200,000 1,784,000| 872,000 Machinery Assembly Packaging A factory survey revealed the following: Departments Maintenance Number of Direct Requisitions Labor Hours Services Maintenance 400 Storeroom 14% 20,000 36,000| 18,000 Machinery 32% 3,500 26% 6,000 4,100| Assembly Packaging 28% The costs of the maintenance department are allocated on the basis of percent of services rendered while the costs of the Storeroom department are allocated based on number of requisitions.
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