Fablcations Py Ltd is developing departmental overhead rates based on drect abour hours for its two production depatmets Asemtly and Fshg The Department employs 26 people and the Finishing Department employs 75 people Each person in these two deparments wos 120 hours per ye The product overhead costs for the Assembly Department are budgeted at $268.000, and the Finishing Department costs ae budgeted S30.000. Two servie depariments Computing, directly support the hwo production departments. These service departments have budgeled costs of $54,000 ard $240.000, respeively The productie overhead rates cannot be determined until the service departments costs are alocated. The folowing schedule reffects the use of the Maintenanoe bepartments Department's output by the varlous departments Using Department Service Computing Maintenance Assembly Finishing Department Maintenance Emaintenance hours) Computing (minutes) 1,000 2,000 7,000 200,000 750,000 250,000 quired:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

answer straight away please thank you 

PVC Fabrications Ply Lid is developing departmental overhead rates based on direct labour hours for its two production departments, Assembly and Firshing The Assenty
Department employs 25 people and the Finishing Department employs 75 people Each person in these two departments wons 1,920 hours per ye The productionetatad
overhead costs for the Assembly Department are budgeted at $288.000, and the Finishing Department costs are budgeted t S330.000. Two service departments Mairtenance and
Computing, directly support the two production depertments. These service departments have budgeted costs of $54,000 and $240,000, respectively The production department
overhead rates cannot be detemined until the service departments costs are allocated. The following schedule refects the use of the Maintenance Departments and Computing
Department's output by the various departments.
Using Department
Service
Computing
Maintenance
Assembly
Finishing
Department
Maintenance
(maintenance hours)
Computing (minutes)
1,000
2,000
7,000
200,000
750,000
250,000
Required:
Use the direct method to allocate service department costs. Calculate the overhead rates per direct labour hour for the Assembly Department and the Finishing
Department Show all workings.
Transcribed Image Text:PVC Fabrications Ply Lid is developing departmental overhead rates based on direct labour hours for its two production departments, Assembly and Firshing The Assenty Department employs 25 people and the Finishing Department employs 75 people Each person in these two departments wons 1,920 hours per ye The productionetatad overhead costs for the Assembly Department are budgeted at $288.000, and the Finishing Department costs are budgeted t S330.000. Two service departments Mairtenance and Computing, directly support the two production depertments. These service departments have budgeted costs of $54,000 and $240,000, respectively The production department overhead rates cannot be detemined until the service departments costs are allocated. The following schedule refects the use of the Maintenance Departments and Computing Department's output by the various departments. Using Department Service Computing Maintenance Assembly Finishing Department Maintenance (maintenance hours) Computing (minutes) 1,000 2,000 7,000 200,000 750,000 250,000 Required: Use the direct method to allocate service department costs. Calculate the overhead rates per direct labour hour for the Assembly Department and the Finishing Department Show all workings.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Balance Of Payment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education