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 Occupied 1,200 1,500 2,900 1,100 2,000 1,600 Maintenance P129,000 105,000 Security Cutting Assembly 416,000 1,900 380,000 3,200 The maintenance costs are allocated based on estimated labor hours 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. P498,693 P259,350 P502,645 P497,211 None of the above

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 8E: A manufacturing company has two service and two production departments. Building Maintenance and...
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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
Occupied
1,200
1,500
Labor Hrs
2,900
1,100
Maintenance
P129,000
105,000
Security
Cutting
Assembly
416,000
2,000
1,900
1,600
The maintenance costs are allocated based on estimated labor hours
380,000
3,200
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.
P498,693
P259,350
P502,645
P497,211
None of the above
Transcribed Image Text: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 Occupied 1,200 1,500 Labor Hrs 2,900 1,100 Maintenance P129,000 105,000 Security Cutting Assembly 416,000 2,000 1,900 1,600 The maintenance costs are allocated based on estimated labor hours 380,000 3,200 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. P498,693 P259,350 P502,645 P497,211 None of the above
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