Cebu Pacific has two operating departments, Freight and Passenger, and two service centers, maintenance and Administration. The following data are available for the period just ended: Table is below Administration is allocated first using labor hours as the basis of allocation followed by Maintenance using number of employees as the basis. 1. If the step method is used to allocate service costs, the maintenance cost allocated to Freight Department is __________. 2. If simultaneous method is used to allocate service costs, the total service costs allocated to Freight Department is _________.
Cebu Pacific has two operating departments, Freight and Passenger, and two service centers, maintenance and Administration. The following data are available for the period just ended: Table is below Administration is allocated first using labor hours as the basis of allocation followed by Maintenance using number of employees as the basis. 1. If the step method is used to allocate service costs, the maintenance cost allocated to Freight Department is __________. 2. If simultaneous method is used to allocate service costs, the total service costs allocated to Freight Department is _________.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cebu Pacific has two operating departments, Freight and Passenger, and two service centers, maintenance and Administration. The following data are available for the period just ended:
Table is below
Administration is allocated first using labor hours as the basis of allocation followed by Maintenance
using number of employees as the basis.
1. If the step method is used to allocate service costs, the maintenance cost allocated to Freight
Department is __________.
2. If simultaneous method is used to allocate service costs, the total service costs allocated to
Freight Department is _________.
Transcribed Image Text:Problem No. 3
Cebu Pacific has two operating departments, Freight and Passenger, and two service centers,
Maintenance and Administration. The following data are available for the period just ended:
Service Departments
Producing Departments
Maintenance
Administration Freight
Passenger
1,800,500.00 5,260,470.00
30,000
Direct OH Costs
630,000.00
950,000.00
DLH
8,000
9,000
51,000
# of Employees
40
50
80
200
Administration is allocated first using labor hours as the basis of allocation followed by Maintenance
using number of employees as the basis.
1.
If the step method is used to allocate service costs, the maintenance cost allocated to Freight
Department is
2. If simultaneous method is used to allocate service costs, the total service costs allocated to
Freight Department is
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