The managers of GB Inc. 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 (SEE PICTURE BELOW): If GB uses the step-down method of allocating service costs beginning with quality control, the maintenance costs allocated to the assembly department would be: * Budgeted Quality Control Maintenance Machining Assembly Total Overhead costs before P 350,000 P 200,000 P 400,000 P 300,000 P 1,250,000 allocation Machine hours Direct labor hours 50,000 50,000 25,000 25,000
The managers of GB Inc. 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 (SEE PICTURE BELOW): If GB uses the step-down method of allocating service costs beginning with quality control, the maintenance costs allocated to the assembly department would be: * Budgeted Quality Control Maintenance Machining Assembly Total Overhead costs before P 350,000 P 200,000 P 400,000 P 300,000 P 1,250,000 allocation Machine hours Direct labor hours 50,000 50,000 25,000 25,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 38
Cost Accounting
Choose the answer from the choices
Transcribed Image Text:The managers of GB Inc. 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 (SEE PICTURE BELOW):
If GB uses the step-down method of allocating service costs beginning with quality control, the
maintenance costs allocated to the assembly department would be: *
Quality
Control
Maintenance Machining Assembly
Budgeted
Total
Overhead
costs before
allocation
Machine
P 350,000 P 200,000
P 400,000 P300,000
P 1,250,000
hours
50,000
50,000
Direct labor
hours
Hrs.
services:
Quality
control
Maintenance 10,000
| 25,000
25,000
of
| 7,000
12,000
7,000
21,000
18,000
35,000
40,000
O a. P 60,000
ОБ.Р 108,000
O C.P 162,000
O d. P 200,000
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