Q-1: The Hum co. has decided to distribute the costs of service departments by the algebraic method. The producing department A and B the service departments X and Y and the monthly data are: Actual factory overhead Cost before distribution Rs Service provided by Y 84,000 58,000 20,000 17,600 40% 50% В 50 30 20 Y. 10 Required: Total factory overhead of producing department after distribution of service department cost. Department A predetermined overhead rate is based on direct labor hours. The total rate is Rs3, 40% of which fixed. Fixed overhead budgeted is Rs 46,000. The Actual direct labor hours for the month were 34,000. Compute spending and idle capacity variances for department A.

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: Using...
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Q-1: The Hum co. has decided to distribute the costs of service departments by the algebraic method. The
producing department A and B the service departments X and Y and the monthly data are:
Actual factory overhead
Cost before distribution
Rs
Service provided by
Y
50%
84,000
58,000
20,000
17,600
A
40%
50
30
20
Y.
10
Required:
Total factory overhead of producing department after distribution of service department cost.
Department A predetermined overhead rate is based on direct labor hours. The total rate is Rs3, 40% of which
fixed. Fixed overhead budgeted is Rs 46,000. The Actual direct labor hours for the month were 34,000.
Compute spending and idle capacity variances for department A.
Transcribed Image Text:Q-1: The Hum co. has decided to distribute the costs of service departments by the algebraic method. The producing department A and B the service departments X and Y and the monthly data are: Actual factory overhead Cost before distribution Rs Service provided by Y 50% 84,000 58,000 20,000 17,600 A 40% 50 30 20 Y. 10 Required: Total factory overhead of producing department after distribution of service department cost. Department A predetermined overhead rate is based on direct labor hours. The total rate is Rs3, 40% of which fixed. Fixed overhead budgeted is Rs 46,000. The Actual direct labor hours for the month were 34,000. Compute spending and idle capacity variances for department A.
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