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FOH Cost Service provided to: Service Department Production Department

FOH Cost Service provided to: Service Department Production Department

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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PRIMARY DISTRIBUTION OF OVERHEADS ILLUSTRATIONS ABC Company has three (3) productions departments A,B, and Cand two (2) services departments D and E. The following figures are extracted from the records of the company Cost Items Amount Cost Rent and Rates 10,000 Depreciation of Machinery 20,000 Electricity 3,000 Administrative Expense 20,000 The Following details are also availables Resources Dept. A Dept. B Dept. C Dept. D Dept. E Total Floor Area (sqm) 1,500 1,500 3,000 2,000 2,000 10,000 Direct Wages (in peso) 10,000 15,000 50,000 20,000 5,000 100,000 House Power of Machines 40 30 100 20 10 200 Value of Machines 50,000 10,000 25,000 12,000 3,000 100,000
Transcribed Image Text:PRIMARY DISTRIBUTION OF OVERHEADS ILLUSTRATIONS ABC Company has three (3) productions departments A,B, and Cand two (2) services departments D and E. The following figures are extracted from the records of the company Cost Items Amount Cost Rent and Rates 10,000 Depreciation of Machinery 20,000 Electricity 3,000 Administrative Expense 20,000 The Following details are also availables Resources Dept. A Dept. B Dept. C Dept. D Dept. E Total Floor Area (sqm) 1,500 1,500 3,000 2,000 2,000 10,000 Direct Wages (in peso) 10,000 15,000 50,000 20,000 5,000 100,000 House Power of Machines 40 30 100 20 10 200 Value of Machines 50,000 10,000 25,000 12,000 3,000 100,000
Step 1: Identify FOH Cost Service provided to: Service Department Production Department
Transcribed Image Text:Step 1: Identify FOH Cost Service provided to: Service Department Production Department
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