JYD manufacturing company has two production departments: Fabrication and assembly and three service departments (general factory administration,factory maintenance and factory cafeteria) A summary of the year’s overhead cost and other data for each department prior to allocation of service department costs appears below The costs of the General Factory Administration Department, Factory Maintenance Department and Factory Cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. It is the company’s policy that the order of distribution is based on the highest peso amount of costs originating in the service departments and the direct method is used. Assuming assembly department uses direct labor hours, what is the factory overhead rate of assembly dept?

JYD manufacturing company has two production departments: Fabrication and assembly and three service departments (general factory administration,factory maintenance and factory cafeteria) A summary of the year’s overhead cost and other data for each department prior to allocation of service department costs appears below The costs of the General Factory Administration Department, Factory Maintenance Department and Factory Cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. It is the company’s policy that the order of distribution is based on the highest peso amount of costs originating in the service departments and the direct method is used. Assuming assembly department uses direct labor hours, what is the factory overhead rate of assembly dept?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...

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