Vicente Company operates with two producing ce artments, PI and P2, and two service departments, S1 and S2. Actual manufacturing overhead before allocation of service department costa, together with the usage of service from the service departments, is as follows: Actual Manufacturing Overhead Before Allocation of Service Departmental Costs Services prouided by Department IS 000 0F d 009 00 %0% P2 09 OF P120,000 600 Compute the total manufacturing overhead (including service 1. departments costs) for each producing department, allocating service costs to producing departments only. 2. Compute the total manufacturing overhead (including service departments costs) for each producing department, allocating service department costs stepwise, beginning with department S2. After a department expenses hsave been allocated, no expenses are assigned back to it. Determine the total manufacturing overhead (including service 3. department Osts) for each producing department using the reciprocal method. 1.jpg 2.jpg

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Vicente Company operates with two producing departments, PI and P2
and two service departments, Sl and S2. Actual ma
before allocation of service department costs, together with the usage of
service from the service departments, is as follows:
ufacturing overhend
Actual Manufaeturing Overhead
Before Allocation of
Seruice Departmental Costs
Services prouided by
Department
IS
10%
09
0%
000
Required:
Compute the total hanulacturinz overhead (ineluding ser
departments costs) for ench producing department, allocating
service costs to producing departiments only.
Compute the total maniacturing.overhead (including service
departments costs) for each producing department allocating
service department costs stepwise, beonning with department
$2.Aner. department expenses bave been ailocated, no
expensics ay ed bck.coir
3.Determin
thetotal
departmentcONG
reciprocal rnethed
2verbend dincluding service
producing department using the
நமரங்க
2.jpg
1.jpg
dp
Transcribed Image Text:Vicente Company operates with two producing departments, PI and P2 and two service departments, Sl and S2. Actual ma before allocation of service department costs, together with the usage of service from the service departments, is as follows: ufacturing overhend Actual Manufaeturing Overhead Before Allocation of Seruice Departmental Costs Services prouided by Department IS 10% 09 0% 000 Required: Compute the total hanulacturinz overhead (ineluding ser departments costs) for ench producing department, allocating service costs to producing departiments only. Compute the total maniacturing.overhead (including service departments costs) for each producing department allocating service department costs stepwise, beonning with department $2.Aner. department expenses bave been ailocated, no expensics ay ed bck.coir 3.Determin thetotal departmentcONG reciprocal rnethed 2verbend dincluding service producing department using the நமரங்க 2.jpg 1.jpg dp
Jack and Tom has three revenue-departmente; litigation (Lit.), family
practice (FP), and legal consulting (LC). In addition, the company has
two support departments, administition and EDP. Administration costs
are allocated to the three revenue departments on the basis of number of
employees. EDP's fixed costs are allocated to revenue departments on
the basis of peak hours of monthly service expected to be used by each
revenue departments. EDP's variable costs are assigned to the revenue
departments at a transfer price of P40 per hour of actual service. Following
are the direct costs and the allocation bases associated with each of the
departments:
NUMBER OF
S NOLLVOTIV
Direct Cost
(before transfer Cost) Employees Hours Hours Used
EDP
Administration
30
2.
Lit.
गवणण-dds
Required:
Allocate all support department costs to the operating departments
using the direct method.
What are the total costs of the operating.departaments after the
allocation in (a)?
Add file
2.jpg
6df
Transcribed Image Text:Jack and Tom has three revenue-departmente; litigation (Lit.), family practice (FP), and legal consulting (LC). In addition, the company has two support departments, administition and EDP. Administration costs are allocated to the three revenue departments on the basis of number of employees. EDP's fixed costs are allocated to revenue departments on the basis of peak hours of monthly service expected to be used by each revenue departments. EDP's variable costs are assigned to the revenue departments at a transfer price of P40 per hour of actual service. Following are the direct costs and the allocation bases associated with each of the departments: NUMBER OF S NOLLVOTIV Direct Cost (before transfer Cost) Employees Hours Hours Used EDP Administration 30 2. Lit. गवणण-dds Required: Allocate all support department costs to the operating departments using the direct method. What are the total costs of the operating.departaments after the allocation in (a)? Add file 2.jpg 6df
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