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departments (Assembly and Finishing) and two service departments (HRD & Janitorial). The projected usage of the two service departments are as follows: Use of HRD Use of Janitorial HRD 0 5% Janitorial 10% 0 Assembly 60% 40% Finishing 30% 55% The budget costs in the service departments are:

departments (Assembly and Finishing) and two service departments (HRD & Janitorial). The projected usage of the two service departments are as follows: Use of HRD Use of Janitorial HRD 0 5% Janitorial 10% 0 Assembly 60% 40% Finishing 30% 55% The budget costs in the service departments are:

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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(Questions for 7-9). The Lexy Manufacturing Co. Has two production departments (Assembly and Finishing) and two service departments (HRD & Janitorial). The projected usage of the two service departments are as follows: Use of HRD Use of Janitorial HRD 0 5% Janitorial 10% 0 Assembly 60% 40% Finishing 30% 55% The budget costs in the service departments are: Janitorial - P50,000 HRD-P90,000 7. Using the direct method, what is the total amount of service department costs allocated to Assembly department? 8.Using step-down method, what the total amount of service department costs allocated to the Finishing department? 9. Using reciprocal method, how much is the amout of Janitorial department cost allocated to Finishing department?
Transcribed Image Text:(Questions for 7-9). The Lexy Manufacturing Co. Has two production departments (Assembly and Finishing) and two service departments (HRD & Janitorial). The projected usage of the two service departments are as follows: Use of HRD Use of Janitorial HRD 0 5% Janitorial 10% 0 Assembly 60% 40% Finishing 30% 55% The budget costs in the service departments are: Janitorial - P50,000 HRD-P90,000 7. Using the direct method, what is the total amount of service department costs allocated to Assembly department? 8.Using step-down method, what the total amount of service department costs allocated to the Finishing department? 9. Using reciprocal method, how much is the amout of Janitorial department cost allocated to Finishing department?
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