Using the reciprocal method, the applied factory overhead of the assembly department if it used 24,700 machine hours is closest to: Galinganmo Corp has two service departments and two producing departments. The following are data available for the year 2021: FOH cost Estimated Area Labor Hrs 2,900 1,100 Occupied 1,200 1,500 P129,000 105,000 416,000 380,000 The maintenance costs are allocated based on estimated labor hours Maintenance Security Cutting Assembly 2,000 1,900 3,200 1,600 and security is allocated based on space occupied. The producing department uses machine hours with 50,000 for cutting and 25,000 for assembly to determine the factory overhead rate. O P498,693 P259,350 O P502,645 P497,211 None of the above
Using the reciprocal method, the applied factory overhead of the assembly department if it used 24,700 machine hours is closest to: Galinganmo Corp has two service departments and two producing departments. The following are data available for the year 2021: FOH cost Estimated Area Labor Hrs 2,900 1,100 Occupied 1,200 1,500 P129,000 105,000 416,000 380,000 The maintenance costs are allocated based on estimated labor hours Maintenance Security Cutting Assembly 2,000 1,900 3,200 1,600 and security is allocated based on space occupied. The producing department uses machine hours with 50,000 for cutting and 25,000 for assembly to determine the factory overhead rate. O P498,693 P259,350 O P502,645 P497,211 None of the above
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 23E: Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating...
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