The following MY Corp. has three service departments and three producing departments. Information is available for the year: Service Used by Personnel Security 10% Finishing Maintenance Department Personnel Cost Cutting Sewing 1,000,000 10% 30% 40% 10% Security 400,000 10% 10% 30% 20% 30% Maintenance 100,000 10% 10% 40% 20% 20% Cutting Sewing Finishing 800,000 1,200,000 Direct 660 P1,850,000 P50,000 P780,000 Material Direct Labor P700,000 P2,550,000 P1,740,000 Actual FOH P300,000 P500,000 P700,000 1. Compute the total service cost allocated to Finishing department using direct method. 2. Compute the total service cost allocated to cutting department using reciprocal method.
The following MY Corp. has three service departments and three producing departments. Information is available for the year: Service Used by Personnel Security 10% Finishing Maintenance Department Personnel Cost Cutting Sewing 1,000,000 10% 30% 40% 10% Security 400,000 10% 10% 30% 20% 30% Maintenance 100,000 10% 10% 40% 20% 20% Cutting Sewing Finishing 800,000 1,200,000 Direct 660 P1,850,000 P50,000 P780,000 Material Direct Labor P700,000 P2,550,000 P1,740,000 Actual FOH P300,000 P500,000 P700,000 1. Compute the total service cost allocated to Finishing department using direct method. 2. Compute the total service cost allocated to cutting department using reciprocal method.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The following MY Corp. has three service departments and three producing departments. Information is
available for the year:
Service Used by
Department
Cost
Personnel
Security
Maintenance
Cutting
Sewing
Finishing
Personnel
1,000,000
10%
10%
30%
40%
10%
Security
400,000
10%
10%
30%
20%
30%
Maintenance
100,000
10%
10%
40%
20%
20%
Cutting
Sewing
Finishing
800,000
1,200,000
Direct
660
P1,850,000 P50,000
P780,000
Material
Direct Labor
P700,000
P2,550,000 P1,740,000
Actual FOH
P300,000
P500,000
P700,000
1. Compute the total service cost allocated to Finishing department using direct method.
2. Compute the total service cost allocated to cutting department using reciprocal method.
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