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If the direct method of allocation is used, how much of the supervision departinent's eost would be allocated to the building occupancy department? (Start with Building occupancy, then Supervision)

If the direct method of allocation is used, how much of the supervision departinent's eost would be allocated to the building occupancy department? (Start with Building occupancy, then Supervision)

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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A summary of the usage of the service department services by other service departments as well as by the two producing departments is as follows: Equipment Building Production Dept. Service Cost Center Supervision Maintenance Occupancy Dept.1 Dept. 2 Supervision Equipment maint. Building occunpany 10% Direct costs in the various departments are as follows: 10% 5% 40% 45% 45% 55% 10% 35% 45% Direct Cost P 35,000 Label si S2 Department Supervision Équipment maintenance Building occupancy Production Dept. No. 1 Production Dept. No. 2 If the direct method of allocation is used, how much of the supervision departinent's eost would be allocated to the building occupancy department? (Start with Building occupancy, then Supervision) 30,000 90,000 350,000 450,000 S3 PI P2 а. 0 b. P1,750 с. Р3,500 d. P5,250
Transcribed Image Text:A summary of the usage of the service department services by other service departments as well as by the two producing departments is as follows: Equipment Building Production Dept. Service Cost Center Supervision Maintenance Occupancy Dept.1 Dept. 2 Supervision Equipment maint. Building occunpany 10% Direct costs in the various departments are as follows: 10% 5% 40% 45% 45% 55% 10% 35% 45% Direct Cost P 35,000 Label si S2 Department Supervision Équipment maintenance Building occupancy Production Dept. No. 1 Production Dept. No. 2 If the direct method of allocation is used, how much of the supervision departinent's eost would be allocated to the building occupancy department? (Start with Building occupancy, then Supervision) 30,000 90,000 350,000 450,000 S3 PI P2 а. 0 b. P1,750 с. Р3,500 d. P5,250
Candice Corporation produces reusable christmas cards in two departments: Printing and Laminating. These departments are supported by two service departments: Personnel and Maintenance. Personnel uses the number of employees as an allocation base and Maintenance uses machine hours. The expected level of activity for next quarter is shown below: No. of employees Machine hours Personnel 40 60 120 Maintenance 60,000 Printing Laminating 180 40,000 Allocations are made in the order shown above. Budgeted costs for next quarter are P93.000 for Personnel and P68,000 for Maintenance. What is the total amount of serice cost that should be allocated to the Printing Department under the direct and step method? Step method Direct method P 68,700 P 77.070 P 78.000 0ד77.0 P a. b. P 78.000 PS1.100 c. P 7S 000 P 77,070
Transcribed Image Text:Candice Corporation produces reusable christmas cards in two departments: Printing and Laminating. These departments are supported by two service departments: Personnel and Maintenance. Personnel uses the number of employees as an allocation base and Maintenance uses machine hours. The expected level of activity for next quarter is shown below: No. of employees Machine hours Personnel 40 60 120 Maintenance 60,000 Printing Laminating 180 40,000 Allocations are made in the order shown above. Budgeted costs for next quarter are P93.000 for Personnel and P68,000 for Maintenance. What is the total amount of serice cost that should be allocated to the Printing Department under the direct and step method? Step method Direct method P 68,700 P 77.070 P 78.000 0ד77.0 P a. b. P 78.000 PS1.100 c. P 7S 000 P 77,070
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