Etona company has two service departments and three producing departments. The following data was made available: Service Departments Maintenance Engineering Producing Departments B Maintenance Hrs Engineering Hrs Overhead Costs 800 800 P80,000 400 200 200 400 400 P90,000 400 P50,000 P12,000 P54,000
Etona company has two service departments and three producing departments. The following data was made available: Service Departments Maintenance Engineering Producing Departments B Maintenance Hrs Engineering Hrs Overhead Costs 800 800 P80,000 400 200 200 400 400 P90,000 400 P50,000 P12,000 P54,000
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 19E: Refer to the data in Exercise 7.18. When the capacity of the HR Department was originally...
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Requirement:
1. Assume that department C applies factory
2. Compute for the overhead rate for department A if the company uses the direct method in allocating service department costs and the department applies overhead based on 18,000 direct labor hours.
3. Under the reciprocal method, what would be the total Engineering department cost?
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