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XYZ Company is exploring ways to allocate the cost of service departments such as Quality Control and Maintenance to the production department such as Machining and Assembly. The controller of the company has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P300,000 P1,250,000 Budgeted machine hours 50,000 hours 50,000 hours Budgeted direct labor hours 25,000 hours 25,000 hours Budgeted hours of service of quality control 7,000 hours 21,000 hours 7,000 hours 35,000 hours Budgeted hours of service of maintenance 10,000 hours 18,000 hours 12,000 hours 40,000 hours Under the reciprocal method of allocating service department costs, what are the total amount of quality control costs and total amount of maintenance costs, respectively, to be allocated to the other departments? A.) 410, 250 and 282, 050 B.) 421, 053 and 284,211 C.) 435,800 and 287,160 D.) 453,201 and 290, 640

XYZ Company is exploring ways to allocate the cost of service departments such as Quality Control and Maintenance to the production department such as Machining and Assembly. The controller of the company has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P300,000 P1,250,000 Budgeted machine hours 50,000 hours 50,000 hours Budgeted direct labor hours 25,000 hours 25,000 hours Budgeted hours of service of quality control 7,000 hours 21,000 hours 7,000 hours 35,000 hours Budgeted hours of service of maintenance 10,000 hours 18,000 hours 12,000 hours 40,000 hours Under the reciprocal method of allocating service department costs, what are the total amount of quality control costs and total amount of maintenance costs, respectively, to be allocated to the other departments? A.) 410, 250 and 282, 050 B.) 421, 053 and 284,211 C.) 435,800 and 287,160 D.) 453,201 and 290, 640

FINANCIAL ACCOUNTING
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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XYZ Company is exploring ways to allocate the cost of service departments such as Quality Control and Maintenance to the production department such as Machining and Assembly. The controller of the company has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P300,000 P1,250,000 Budgeted machine hours 50,000 hours 50,000 hours Budgeted direct labor hours - 25,000 hours 25,000 hours Budgeted hours of service of quality control 7,000 hours 21,000 hours 7,000 hours 35,000 hours Budgeted hours of service of maintenance 10,000 hours 18,000 hours 12,000 hours 40,000 hours Under the reciprocal method of allocating service department costs, what are the total amount of quality control costs and total amount of maintenance costs, respectively, to be allocated to the other departments? A.) 410, 250 and 282, 050 B.) 421, 053 and 284,211 C.) 435,800 and 287,160 D.) 453,201 and 290, 640
Transcribed Image Text:XYZ Company is exploring ways to allocate the cost of service departments such as Quality Control and Maintenance to the production department such as Machining and Assembly. The controller of the company has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P300,000 P1,250,000 Budgeted machine hours 50,000 hours 50,000 hours Budgeted direct labor hours - 25,000 hours 25,000 hours Budgeted hours of service of quality control 7,000 hours 21,000 hours 7,000 hours 35,000 hours Budgeted hours of service of maintenance 10,000 hours 18,000 hours 12,000 hours 40,000 hours Under the reciprocal method of allocating service department costs, what are the total amount of quality control costs and total amount of maintenance costs, respectively, to be allocated to the other departments? A.) 410, 250 and 282, 050 B.) 421, 053 and 284,211 C.) 435,800 and 287,160 D.) 453,201 and 290, 640
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