ompute for the total Factory overhead rate of G Department, if the company uses the step method in allocating service department costs and distributes the cost of Department U first, Department V second and finally Department W. The producing departments uses the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. The Madalilangko Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G U V W Rent 250,000 770,000 15,000 14,500 7,000 Repairs 100,000 120,500 23,000 30,000 7,500 Fuel 350,000 420,000 9,500 7,000 6,000 Indirect Labor 157,500 170,000 145,000 100,000 97,500 Indirect Materials 61,000 56,500 127,000 94,500 60,000 Heat and Light 202,500 151,200 9,000 6,000 7,500 Depreciation 94,000 71,300 3,000 1,500 2,000 Miscellaneous 60,000 50,500 500 500 500 Followung is the result of the factory survey regarding service departments: [A] Department U services G, V and W in the ratio of 2:1:1, respectively. [B] Department V services Department H, G, U, and W in the ration of 4:3:2:1, respectively; [C] Department W services Department H and G in the ratio of 3:1, respectively.

ompute for the total Factory overhead rate of G Department, if the company uses the step method in allocating service department costs and distributes the cost of Department U first, Department V second and finally Department W. The producing departments uses the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. The Madalilangko Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G U V W Rent 250,000 770,000 15,000 14,500 7,000 Repairs 100,000 120,500 23,000 30,000 7,500 Fuel 350,000 420,000 9,500 7,000 6,000 Indirect Labor 157,500 170,000 145,000 100,000 97,500 Indirect Materials 61,000 56,500 127,000 94,500 60,000 Heat and Light 202,500 151,200 9,000 6,000 7,500 Depreciation 94,000 71,300 3,000 1,500 2,000 Miscellaneous 60,000 50,500 500 500 500 Followung is the result of the factory survey regarding service departments: [A] Department U services G, V and W in the ratio of 2:1:1, respectively. [B] Department V services Department H, G, U, and W in the ration of 4:3:2:1, respectively; [C] Department W services Department H and G in the ratio of 3:1, respectively.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Compute for the total Factory overhead rate of G Department, if the company uses the step method in allocating service department costs and distributes the cost of Department U first, Department V second and finally Department W. The producing departments uses the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours.

The Madalilangko Ink Company prepared the following table for the year 2019:

Production Service Departments

Departments

H G U V W

Rent 250,000 770,000 15,000 14,500 7,000

Repairs 100,000 120,500 23,000 30,000 7,500

Fuel 350,000 420,000 9,500 7,000 6,000

Indirect Labor 157,500 170,000 145,000 100,000 97,500

Indirect Materials 61,000 56,500 127,000 94,500 60,000

Heat and Light 202,500 151,200 9,000 6,000 7,500

Depreciation 94,000 71,300 3,000 1,500 2,000

Miscellaneous 60,000 50,500 500 500 500