BTS Company has two main departments in the plant site namely Producing department (main) and the Servicing department (support).Jin is allocated based on the machine hours while Suga is allocated based on direct labor hours Under the direct method, how much is the total overhead cost of JK? Producing Departments / Main DepartmentServicing DepartmentsTotalJKVJiminJinSugaP80,000.00Overhead costsP385,000.00P198,500.00P225,800.00P75,200.00P964,500.00Machine hours2,0001,8001,2006004006,000Direct labor hours1,000500500500400.02,900

Direct Method:-It is the simplest method of cost allocation of the Service department to its other…

Producing Departments / Main Department Servicing Departments Total JK V Jimin Jin Suga P80,000.00| Overhead costs P385,000.00 P198,500.00 P225,800.00 P75,200.00 P964,500.00 Machine hours 6,000 2,900 2,000 1,800 1,200 600 400 Direct labor hours 1,000 500 500 500 400.0

Producing Departments / Main Department Servicing Departments Total JK V Jimin Jin Suga P80,000.00| Overhead costs P385,000.00 P198,500.00 P225,800.00 P75,200.00 P964,500.00 Machine hours 6,000 2,900 2,000 1,800 1,200 600 400 Direct labor hours 1,000 500 500 500 400.0

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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THIS is cOST ACCOUNTING FOR FACTORY OVERHEAD. PLEASE ANSWER AND SHOW SOLUTIONS
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