JYD manufacturing company has two production departments: Fabrication and assembly and three service departments (general factory administration,factory maintenance and factory cafeteria) A summary of the year’s overhead cost and other data for each department prior to allocation of service department costs appears below The costs of the General Factory Administration Department, Factory Maintenance Department and Factory Cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. It is the company’s policy that the order of distribution is based on the highest peso amount of costs originating in the service departments and the direct method is used. Assuming assembly department uses direct labor hours, what is the factory overhead rate of assembly dept?
JYD manufacturing company has two production departments: Fabrication and assembly and three service departments (general factory administration,factory maintenance and factory cafeteria) A summary of the year’s overhead cost and other data for each department prior to allocation of service department costs appears below The costs of the General Factory Administration Department, Factory Maintenance Department and Factory Cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. It is the company’s policy that the order of distribution is based on the highest peso amount of costs originating in the service departments and the direct method is used. Assuming assembly department uses direct labor hours, what is the factory overhead rate of assembly dept?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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JYD manufacturing company has two production departments: Fabrication and assembly
and three service departments (general factory administration,factory maintenance and factory cafeteria)
A summary of the year’s overhead cost and other data for each department prior to allocation of service department costs appears below
The costs of the General Factory Administration Department, Factory Maintenance Department and Factory Cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. It is the company’s policy that the order of distribution is based on the highest peso amount of costs originating in the service departments and the direct method is used.
Assuming assembly department uses direct labor hours, what is the factory overhead rate of assembly dept?
Transcribed Image Text:Fabrication
Assembly
Gen. Factory
Adm. Factory Main.
Factory Cafe.
ОН Costs
P6,730,000 P4,850,000 P160,000
P203,200
P240,000
DL Costs
562,500
437,500
31,000
27,000
42,000
# of Employees
280
200
12
8
20
Sq. Footage Occupied
88,000
72,000
1,750
2,000
4,800
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