JYD Manufacturing Company has two production departments (Fabrication and Assembly ) and three service departments (General Factory Administration, Factory Maintenance, and Factory Cafeteria). A summary of the year’s overhead cost and other data for each department prior to allocation of service department costs appears below: Fabrication Assembly Gen. Factory Adm. Factory Main. Factory Cafe. OH Costs P6,730,000 P4,850,000 P160,000 P203,200 P240,000 DL Costs 562,500 437,500 31,000 27,000 42,000 # of Employees 280 200 12 8 20 Sq. Footage Occupied 88,000 72,000 1,750 2,000 4,800 The costs of the General Factory Administration Department, Factory Maintenance Department and Factory Cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. It is the company’s policy that the order of distribution is based on the highest peso amount of costs originating in the service departments and the direct method is used. What is the total overhead cost allocated to the Fabrication Department? Assuming Assembly Department uses direct labor hours, what is the Factory Overhead Rate of Assembly Department?
- JYD Manufacturing Company has two production departments (Fabrication and Assembly ) and three service departments (General Factory Administration, Factory Maintenance, and Factory Cafeteria).
A summary of the year’s
Fabrication Assembly Gen. Factory Adm. Factory Main. Factory Cafe.
OH Costs P6,730,000 P4,850,000 P160,000 P203,200 P240,000
DL Costs 562,500 437,500 31,000 27,000 42,000
# of Employees 280 200 12 8 20
Sq. Footage Occupied 88,000 72,000 1,750 2,000 4,800
The costs of the General Factory Administration Department, Factory Maintenance Department and Factory Cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. It is the company’s policy that the order of distribution is based on the highest peso amount of costs originating in the service departments and the direct method is used.
What is the total overhead cost allocated to the Fabrication Department?
Assuming Assembly Department uses direct labor hours, what is the Factory Overhead Rate of Assembly Department?
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