uses the direct method and the producing departments using the following
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Compute for the total Factory overhead cost of Department H 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:
Production
Service Departments
Departments
H
G
V
w
770,000
120,500
420,000
170,000
15,000
23,000
9,500
14,500
30,000
7,000
7,000
7,500
6,000
97,500
Rent
250,000
100,000
350,000
157,500
61,000
Repairs
Fuel
Indirect Labor
145,000
127,000
100,000
94,500
Indirect
56,500
60,000
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;
[C] Department W services Department H and G in the ratio of 3:1, respectively.
7,500
202,500
94,000
60,000
151,200
71,300
50,500
9,000
3,000
6,000
1,500
500
2,000
500
500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd5b6543b-bd95-4630-b4fa-8f9eec8f98da%2Fbadded0a-74ca-41f7-a62f-c624575ef5ff%2F0vlfao_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Compute for the total Factory overhead cost of Department H 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:
Production
Service Departments
Departments
H
G
V
w
770,000
120,500
420,000
170,000
15,000
23,000
9,500
14,500
30,000
7,000
7,000
7,500
6,000
97,500
Rent
250,000
100,000
350,000
157,500
61,000
Repairs
Fuel
Indirect Labor
145,000
127,000
100,000
94,500
Indirect
56,500
60,000
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;
[C] Department W services Department H and G in the ratio of 3:1, respectively.
7,500
202,500
94,000
60,000
151,200
71,300
50,500
9,000
3,000
6,000
1,500
500
2,000
500
500
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