Etona company has two service departments and three producing departments. made available: The following đátă was Service Departments Maintenance Engineering Producing Departments A Maintenance Hrs Engineering Hrs Overhead Costs 400 800 200 200 400 400 800 P80,000 400 P12,000 P54,000 P90,000 P50,000 INDEPENDENT QUESTIONS: 1. Assume that department C applies factory overhead based on units produced with an estimate of 5,000 units for the period. The actual units produced for the current period was 4800. If the company uses the step method in allocating service department costs, how much is the applied factory overhead of department C. 2. Compute for the overhead rate for department A if the company uses the direct method in allocating service department costs and the department applies overhead based on 18,000 direct labor hours. 3. Under the reciprocal method, what would be the total Engineering department cost?

Etona company has two service departments and three producing departments. made available: The following đátă was Service Departments Maintenance Engineering Producing Departments A Maintenance Hrs Engineering Hrs Overhead Costs 400 800 200 200 400 400 800 P80,000 400 P12,000 P54,000 P90,000 P50,000 INDEPENDENT QUESTIONS: 1. Assume that department C applies factory overhead based on units produced with an estimate of 5,000 units for the period. The actual units produced for the current period was 4800. If the company uses the step method in allocating service department costs, how much is the applied factory overhead of department C. 2. Compute for the overhead rate for department A if the company uses the direct method in allocating service department costs and the department applies overhead based on 18,000 direct labor hours. 3. Under the reciprocal method, what would be the total Engineering department cost?

Name: Etona company has two service departments and three producing departm
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Description: Etona company has two service departments and three producing departments. The following data wasmade available:Service DepartmentsMaintenance EngineeringProducing DepartmentsABMaintenance Hrs400800200200Engineering HrsOverhead Costs400800400400P12,

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 1CMA

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