ABC Corp. distributes service department overhead costs directly to producing departments without allocation to the other service department. Information for the month of June is as follows: Service Departments Maintenance Utilities Overhead costs incurred . P20,000 P10,000 Service provided to department: Maintenance.. Utilities. Producing-A. Producing-B. Totals.. 10% 20% 40% 40% 100% 30% 60% 100% The amount of Maintenance Department costs distributed to Producing-A Department for June was: P8,000 P8,800 P10,000 P11,000
ABC Corp. distributes service department overhead costs directly to producing departments without allocation to the other service department. Information for the month of June is as follows: Service Departments Maintenance Utilities Overhead costs incurred . P20,000 P10,000 Service provided to department: Maintenance.. Utilities. Producing-A. Producing-B. Totals.. 10% 20% 40% 40% 100% 30% 60% 100% The amount of Maintenance Department costs distributed to Producing-A Department for June was: P8,000 P8,800 P10,000 P11,000
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 8P: Journalizing the distribution of service department costs to production departments
Required:
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