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Quality Maintenance Machining Assem bly Total Control Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P 300,000 P1,250,000 Budgeted machine hours 50,000 25,000 50,000 Budgeted direct labor hours 25,000 Budgeted hours of service: Quality Control Maintenance 21,000 35,000 40,000 7,000 7,000 12,000 10,000 18,000

Quality Maintenance Machining Assem bly Total Control Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P 300,000 P1,250,000 Budgeted machine hours 50,000 25,000 50,000 Budgeted direct labor hours 25,000 Budgeted hours of service: Quality Control Maintenance 21,000 35,000 40,000 7,000 7,000 12,000 10,000 18,000

FINANCIAL ACCOUNTING
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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Using the direct method, the total amount of overhead allocated to each machine hour at NUBD Co. would be (round-off to 2 decimal places)

If NUBD Co. uses the step-down method of allocating service costs beginning with quality control, the maintenance costs allocated to the Assembly Department would be

If NUBD Co. uses the direct method of allocating service department costs, the total service costs allocated to the assembly department would be

If NUBD Co. uses the reciprocal method of allocating service costs, the total amount of quality control costs (rounded to the nearest peso) to be allocated to the other departments would be

The managers of NUBD Co. are discussing ways to allocate the cost of service departments such as Quality Control and Maintenance to the production departments. To aid them in this discussion the controller has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation P 350,000 P200,000 P400,000 P300,000 P1,250,000 Budgeted machine hours 50,000 25,000 50,000 Budgeted direct labor hours 25,000 Budgeted hours of service: Quality Control Maintenance 35,000 40,000 7,000 21,000 18,000 7,000 12,000 10,000
Transcribed Image Text:The managers of NUBD Co. are discussing ways to allocate the cost of service departments such as Quality Control and Maintenance to the production departments. To aid them in this discussion the controller has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation P 350,000 P200,000 P400,000 P300,000 P1,250,000 Budgeted machine hours 50,000 25,000 50,000 Budgeted direct labor hours 25,000 Budgeted hours of service: Quality Control Maintenance 35,000 40,000 7,000 21,000 18,000 7,000 12,000 10,000
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