If the company uses the direct method of service department cost distribution how much will the Machinery Department apply as factory overhead if it uses 13,500 direct labor hours? þeang Corporation has two service departments and three producing departments. The following were gathered from their operations: Service Departments P500,000 540,000 Maintenance Storeroom Producing Departments 1,200,000 1,784,000 872,000 Machinery Assembly Packaging A factory survey revealed the following: Maintenance Number of Direct Requisitions Labor Hours Departments Services Maintenance 400 Storeroom 14% 32% 26% 3,500 6,000 4,100| Machinery 20,000 Assembly 36,000 Packaging 28% 18,000| The costs of the maintenance department are allocated on the basis of percent of services rendered while the costs of the Storeroom department are allocated based on number of requisitions,
If the company uses the direct method of service department cost distribution how much will the Machinery Department apply as factory overhead if it uses 13,500 direct labor hours? þeang Corporation has two service departments and three producing departments. The following were gathered from their operations: Service Departments P500,000 540,000 Maintenance Storeroom Producing Departments 1,200,000 1,784,000 872,000 Machinery Assembly Packaging A factory survey revealed the following: Maintenance Number of Direct Requisitions Labor Hours Departments Services Maintenance 400 Storeroom 14% 32% 26% 3,500 6,000 4,100| Machinery 20,000 Assembly 36,000 Packaging 28% 18,000| The costs of the maintenance department are allocated on the basis of percent of services rendered while the costs of the Storeroom department are allocated based on number of requisitions,
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 8E: A manufacturing company has two service and two production departments. Building Maintenance and...
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