ne following information for Ram Corporation Service departments ( total estimated costs) Building and ground maintenance Storeroom 21,960.40 15,990.00 P Producing departments (estimated factory overhead costs Department A Department B 42,000.00 51,000.00 Est. DL Hrs. Est. Sq.Ft. No. of Requisition 750 150 Bldg. and ground maintenance Storeroom 130 40 890 2,500 Department A Department B 1,925 1,200 2.330 1,400 The base to be used for allocating the cost of Building and ground maintenance square feet and for the storeroom cost is the number of requisitions. Direct labor hou are used to compute the producing departments' factory overhead application rawte 1. Using the direct method, what is Department A's factory overhead rate? a. P 30.30 b. Р 47.46 c. P 55.70 d. P 60.53

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following information for Ram Corporation relates to questions 1 and 2
Service departments ( total estimated costs)
Building and ground maintenance
P 21,960.40
15,990.00
Storeroom
Producing departments (estimated factory overhead costs
Department A
Department B
42,000.00
51,000.00
Est. DL Hrs. Est. Sq.Ft. No. of Requisitions
750
150
Bldg. and ground maintenance
Storeroom
130
40
2,500
1,400
890
Department A
Department B
1,925
1,200
2.330
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?
a. P 30.30
b. P 47.46
c. P 55.70
d. P 60.53
Transcribed Image Text:The following information for Ram Corporation relates to questions 1 and 2 Service departments ( total estimated costs) Building and ground maintenance P 21,960.40 15,990.00 Storeroom Producing departments (estimated factory overhead costs Department A Department B 42,000.00 51,000.00 Est. DL Hrs. Est. Sq.Ft. No. of Requisitions 750 150 Bldg. and ground maintenance Storeroom 130 40 2,500 1,400 890 Department A Department B 1,925 1,200 2.330 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? a. P 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 alłocated to the Storeroom Service Department
and both producing departments. (Take all calculations to four decimal places
but round all answers to the nearest peso)
a P 21,960
b. Р22,584
с. Р23,467
d. P24,722
Transcribed Image Text:2. Using the algebraic method, compute for the Building and Grounds Maintenance Department total amount to be alłocated to the Storeroom Service Department and both producing departments. (Take all calculations to four decimal places but round all answers to the nearest peso) a P 21,960 b. Р22,584 с. Р23,467 d. P24,722
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