MULTIPLE CHOICE – PROBLEMS The following information for Ram Corporation relates to questions 1 and 2 Service departments ( total estimated costs) Building and gound maintenance Storeroom Est. DL Hrs. Est. Sq.Ft. No. of Requisitions 21,960.40 15,990.00 P Producing departments (estimated factory overhead costs Department A Department B 42,000.00 51,000.00 750 Bldg. and ground maintenance Storeroom Department A Department B 150 130 1,925 1,200 890 2.330 40 2,500 1,400 The base to be used for allocating the cost of Building and ground maintenance is square feet and for the storeroom cost is the number of requisitions. Direct labor hours are used to compute the producing departments' factory overhead application rawte 1. Using the direct method, what is Department A's factory overhead rate? а. Р 30.30 b. P 47.46 c. P 55.70 d. P 60.53 2. Using the algebraic method, compute for the Building and Grounds Maintenance Department total amount to be allocated to the Storeroom Service Department and both producing departments. (Take all calculations to four decimal places but round all answers to the nearest peso) al P 21,960 b. Р2,584 c. P23,467 d. P24,722
MULTIPLE CHOICE – PROBLEMS The following information for Ram Corporation relates to questions 1 and 2 Service departments ( total estimated costs) Building and gound maintenance Storeroom Est. DL Hrs. Est. Sq.Ft. No. of Requisitions 21,960.40 15,990.00 P Producing departments (estimated factory overhead costs Department A Department B 42,000.00 51,000.00 750 Bldg. and ground maintenance Storeroom Department A Department B 150 130 1,925 1,200 890 2.330 40 2,500 1,400 The base to be used for allocating the cost of Building and ground maintenance is square feet and for the storeroom cost is the number of requisitions. Direct labor hours are used to compute the producing departments' factory overhead application rawte 1. Using the direct method, what is Department A's factory overhead rate? а. Р 30.30 b. P 47.46 c. P 55.70 d. P 60.53 2. Using the algebraic method, compute for the Building and Grounds Maintenance Department total amount to be allocated to the Storeroom Service Department and both producing departments. (Take all calculations to four decimal places but round all answers to the nearest peso) al P 21,960 b. Р2,584 c. P23,467 d. P24,722
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 8P: Journalizing the distribution of service department costs to production departments
Required:
Using...
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