mbers 10 to 21 are be JGG Company has two service de ting of Producing Departments Dept. B Dept. A Dept. C Maintenance Engineering 400 Service Departments Maintenance hours Engineering hours 800 800 200 400 P90,000 200 400 P50,000 400 P80,000 P54,000 D12.000
mbers 10 to 21 are be JGG Company has two service de ting of Producing Departments Dept. B Dept. A Dept. C Maintenance Engineering 400 Service Departments Maintenance hours Engineering hours 800 800 200 400 P90,000 200 400 P50,000 400 P80,000 P54,000 D12.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Chapter)
254
Numbers 10 to 21 are based on the following data:
service
annual
departments to the producing departments on the baside
available:
better
that maintenance and engineering service hours be used
service cost allocation basis. The following data was
Producing Departments
Dept. B
Service Departments
Dept. A
Dept. C
Maintenance Engineering
400
Maintenance hours
Engineering hours
Overhead costs
800
800
200
400
P90,000
200
400
P50,000
400
P80,000
P54,000
P12,000
p0ol method)
whot

Transcribed Image Text:16. Under the direct method of cost allocation, what amount of
Engineering Department's cost would be allocated to Department
A?
a. P20,800
b. P27,000
C. P54,000
d. P -0-
1. Under the step method of cost allocation, what amount of Maintenance
Department's cost is allocated to Engineering Department?
a. P1,500
b. P6,000
c. P3.000
d. P 0-
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