Required: (for peso value round off to P1.00; two decimal places for percentage)Using the direct method, allocate service department costs to producingdepartments and calculate the overhead rates for each producing department follows:Quickies Services, Inc. shows the following estimated operating statistics for thisyear:Service Centers:CafeteriaPersonnelCafeteriaPersonnelPersonnelProcessedDept. QDept.SDept. T2015Producing DepartmentsDept. Q80Dept. S20Dept. T10Budgeted overhead costs for the year and the cost drivers for each departmentsOverheadCost DriverP200,000No. of employees100,000No. of personnel processed800,000No. ofemployees900600250300,0002550600,000Direct laborHours100,000 DLH150,000 DLH50,000 DLHDirect labor hoursDirect labor hoursDirect labor hours

We have, Cafeteria overheads(based on no. of employees) = P200,000 Personnel overheads(based on no.…

Answered: Using the direct method, allocate…

Using the direct method, allocate service department costs to producing departments and calculate the overhead rates for each producing department

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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