Machining Department 60 15,000 Assembly Department 40 Total 100 Item Number of employees . Square footage. Monthly average wage per employee (direct and indirect). Overhead directly chargeable to department (excluding indirect labor). Materials used. Factory rent. Other building costs.. Payroll Department cost. Freight-in and other Receiving Department costs. 10,000 25,000 P 2,000 P 2,500 P90,000 60,000 ? P75,000 90,000 P165,000 150,000 33,000 60,000 18,000 ? ? ? ? ? ? 75,000 In each department, 80% of the employees are direct laborers. Overhead is charged to production on the basis of direct labor cost. The allocation basis for other data is as follows: all building costs, square footage: Payroll Department cost, number of employees; freight-in and other Receiving Department costs, materials used.
Machining Department 60 15,000 Assembly Department 40 Total 100 Item Number of employees . Square footage. Monthly average wage per employee (direct and indirect). Overhead directly chargeable to department (excluding indirect labor). Materials used. Factory rent. Other building costs.. Payroll Department cost. Freight-in and other Receiving Department costs. 10,000 25,000 P 2,000 P 2,500 P90,000 60,000 ? P75,000 90,000 P165,000 150,000 33,000 60,000 18,000 ? ? ? ? ? ? 75,000 In each department, 80% of the employees are direct laborers. Overhead is charged to production on the basis of direct labor cost. The allocation basis for other data is as follows: all building costs, square footage: Payroll Department cost, number of employees; freight-in and other Receiving Department costs, materials used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
EQ Company
Transcribed Image Text:IV. To determine an overhead application rate for its Machining and Assembly Departments, the
management of EQ Co. requested the following overhead cost data for June:
Machining
Department
Assembly
Department
40
Item
Number of employees
Square footage .
Monthly average wage per employee
(direct and indirect)..
Overhead directly chargeable to
department (excluding indirect labor).
Materials used.
Factory rent
Other building costs.
Payroll Department cost.
Freight-in and other Receiving
Department costs.
Total
60
100
15,000
10,000
25,000
P 2,000
P 2,500
P90,000
60,000
P75,000
90,000
?
P165,000
150,000
33,000
60,000
18,000
?
?
?
?
?
?
75,000
In each department, 80% of the employees are direct laborers. Overhead is charged to production on the
basis of direct labor cost. The allocation basis for other data is as follows: all building costs, square
footage: Payroll Department cost, number of employees; freight-in and other Receiving Department
costs, materials used.
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