The Madalilangto Ink Company prepared the following table for the year 2019: Service Departments Production Departments H V Rent 250,000 100,000 350,000 770,000 15,000 23,000 9,500 145,000 14,500 30,000 7,000 7,000 7,500 6,000 97,500 60,000 Repairs 120,500 420,000 Fuel Indirect Labor Indirect 157,500 100,000 94,500 170,000 1. 61,000 56,500 127,000 Materials Heat and Light Depreciation Miscellaneous Following 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 ratio of 4:3:2:1, respectively; icj Department W services Department H and G in the ratio of 3:1, respectively. 202,500 94,000 60,000 151,200 71,300 50,500 9,000 3,000 6,000 1,500 7,500 2,000 500 500 500 a. Compute for the total Factory overhead cost of H 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. b. Compute for the Factory overhead rate of Department G if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours.
The Madalilangto Ink Company prepared the following table for the year 2019: Service Departments Production Departments H V Rent 250,000 100,000 350,000 770,000 15,000 23,000 9,500 145,000 14,500 30,000 7,000 7,000 7,500 6,000 97,500 60,000 Repairs 120,500 420,000 Fuel Indirect Labor Indirect 157,500 100,000 94,500 170,000 1. 61,000 56,500 127,000 Materials Heat and Light Depreciation Miscellaneous Following 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 ratio of 4:3:2:1, respectively; icj Department W services Department H and G in the ratio of 3:1, respectively. 202,500 94,000 60,000 151,200 71,300 50,500 9,000 3,000 6,000 1,500 7,500 2,000 500 500 500 a. Compute for the total Factory overhead cost of H 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. b. Compute for the Factory overhead rate of Department G if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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