mervice
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The estimated departmental manufacturing for producing departmenta
A and Band the estimated costs of service departments C, D, and E (befor
any service department allocations) are:
Producing Department
Service Department
P120,000
180,000
P40,000
B
D
40,000
E
20,000
The interdependence of the departments is as follows:
Services Provided by
Department
D
E
Producing A
Producing B
Service C
Service D
Service E
30%
40%
50%
40
30
20
20
30
Marketing
General office
20
10
100%
100%
100%
Compute the final amount of estimated overhead of Service E after reciprocal transfer costs
have been calculated algebraically.
After computing the total factory overhead of each producing department and what amount of
Department E cost is assigned to Marketing Department?
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