If the company uses the direct method of service department cost distribution, how much will the Machinery Department apply as factory overhead if it uses 13,500 direct labor hours? beang 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: of Direct Requisitions Labor Hours Departments Maintenance Services Number Maintenance 400 Storeroom 14% Machinery 32% 3,500 20,000 Assembly 26% 6,000 36,000 Packaging 28% 4,100 18,000 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.
If the company uses the direct method of service department cost distribution, how much will the Machinery Department apply as factory overhead if it uses 13,500 direct labor hours? beang 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: of Direct Requisitions Labor Hours Departments Maintenance Services Number Maintenance 400 Storeroom 14% Machinery 32% 3,500 20,000 Assembly 26% 6,000 36,000 Packaging 28% 4,100 18,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please show your solution in excel form. Thank you
Transcribed Image Text:If the company uses the direct method of service department
cost distribution, how much will the Machinery Department
apply as factory overhead if it uses 13,500 direct labor hours?
beang Corporation has two service departments and three producing departments. The
following were gathered from their operations:
Service Departments
Maintenance
P500,000
Storeroom
540,000
Producing Departments
1,200,000
1,784,000
872,000
Machinery
Assembly
Packaging
A factory survey revealed the following:
Maintenance Number
Services
of Direct
Requisitions Labor
Hours
Departments
Maintenance
400
Storeroom
14%
20,000
36,000
Machinery
32%
3,500
Assembly
26%
6,000
Packaging
28%
4,100
18,000
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.
Your answer
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education