a Overal factory overhead variancePS4 New Delhi Company has two producing deparments (Mixing and Finishing) and twosupport departments (Maintenance and Technology). Department costs and otherrelevant data for the month of August 2015 are as folows:Support departmentsMaintenance TechnologyP83,200 P60,00Costs incurredPercentages provided to:Maintenance10%TechnologyMiing DepartmentFinishing Department20%30%20%T0%100%100%Required: Calculate the support department costs alocated to Mising and Finishing usinga. Direct distribution methodb Sequential distribution or step-down methodC Algebraic distribution or reciprocal method

Overheads are the indirect expenses which are incurred for production of the goods.

PS4 New Dei Company has to producing departments (Maing and Firishing) and two support departments Mairtenance and Technology) Department costs and other relevant data for the moreh of August 2015 are as folows Support departmerts Marterance Techvology PR3.200 P50.000 Costs incumed Percentages provided t Maintenance Technology Miing Department Finishing Department 20% 30% 20% S0% T0% 100% Required Calculate hepport department cots alocated to Mang and Finiing using a Direct distribution method b Sequential dstribution or step-down method e Algebraic distribution or reciprocal method

PS4 New Dei Company has to producing departments (Maing and Firishing) and two support departments Mairtenance and Technology) Department costs and other relevant data for the moreh of August 2015 are as folows Support departmerts Marterance Techvology PR3.200 P50.000 Costs incumed Percentages provided t Maintenance Technology Miing Department Finishing Department 20% 30% 20% S0% T0% 100% Required Calculate hepport department cots alocated to Mang and Finiing using a Direct distribution method b Sequential dstribution or step-down method e Algebraic distribution or reciprocal method

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 23E: Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating...

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