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help me answer  12 13 14 only with full solution

help me answer  12 13 14 only with full solution

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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help me answer  12 13 14 only with full solution

(Questions for 11-14). Spacer Co. has two operating departments and twq service departments. Budgeted cost and activity in the various departments for last year are shown below: Custodial Cutting Dept. Assembly Dept P120,000 P200,000 4,000 75 10,000 Overhead Cost Square ft. Occupied Number of employees Machine hours 5,000 100 15,000 Services P50,400 500 10 Cafeteria P28,000 1,000 15 Service department costs are allocated to operating departments; with the cost of Custodial services allocated on the basis of square feet of space occupied and the cost of the cafeteria on the basis of number of employees. Overhead rates of the operating departments are computed based on machine hours. 11. Assume that the company uses direct method of allocation, how much is the amount of custodial services allocated to cutting department? 12. Assume the company uses direct method of allocation, what is the overhead rate of the assembly department? 13. Assume the company uses step method of allocation, with custodial services allocated first, how much is the amount of cafeteria allocated to assembly dept.?. 14..Assume that company uses step-down method of allocation, with custodial services allocated first, what is the overhead rate of the cutting department?
Transcribed Image Text:(Questions for 11-14). Spacer Co. has two operating departments and twq service departments. Budgeted cost and activity in the various departments for last year are shown below: Custodial Cutting Dept. Assembly Dept P120,000 P200,000 4,000 75 10,000 Overhead Cost Square ft. Occupied Number of employees Machine hours 5,000 100 15,000 Services P50,400 500 10 Cafeteria P28,000 1,000 15 Service department costs are allocated to operating departments; with the cost of Custodial services allocated on the basis of square feet of space occupied and the cost of the cafeteria on the basis of number of employees. Overhead rates of the operating departments are computed based on machine hours. 11. Assume that the company uses direct method of allocation, how much is the amount of custodial services allocated to cutting department? 12. Assume the company uses direct method of allocation, what is the overhead rate of the assembly department? 13. Assume the company uses step method of allocation, with custodial services allocated first, how much is the amount of cafeteria allocated to assembly dept.?. 14..Assume that company uses step-down method of allocation, with custodial services allocated first, what is the overhead rate of the cutting department?
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