Bernis Company has two service departments: Personnel and Inspection. Böth service departments provide services to the two production departments: Casting and Finishing. The company allocates service department cots using the step-down method. First, will be the costs of the Personnel department which are allocated based on the number of employees. Next will be the costs of the Inspection department allocated on the basis of the number of inspections performed. Selected information on the four departments for September of the current year are given below: Department Number of Costs Number of Inspections Employees Personnel P160,000 100,000 160,000 60,000 10 Inspection Casting Finishing 20 3,200 2,800 80 60
Bernis Company has two service departments: Personnel and Inspection. Böth service departments provide services to the two production departments: Casting and Finishing. The company allocates service department cots using the step-down method. First, will be the costs of the Personnel department which are allocated based on the number of employees. Next will be the costs of the Inspection department allocated on the basis of the number of inspections performed. Selected information on the four departments for September of the current year are given below: Department Number of Costs Number of Inspections Employees Personnel P160,000 100,000 160,000 60,000 10 Inspection Casting Finishing 20 3,200 2,800 80 60
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 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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