Quality Maintenance Machining Assem bly Total Control Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P 300,000 P1,250,000 Budgeted machine hours 50,000 25,000 50,000 Budgeted direct labor hours 25,000 Budgeted hours of service: Quality Control Maintenance 21,000 35,000 40,000 7,000 7,000 12,000 10,000 18,000
Quality Maintenance Machining Assem bly Total Control Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P 300,000 P1,250,000 Budgeted machine hours 50,000 25,000 50,000 Budgeted direct labor hours 25,000 Budgeted hours of service: Quality Control Maintenance 21,000 35,000 40,000 7,000 7,000 12,000 10,000 18,000
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 23E: Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating...
Related questions
Question
Using the direct method, the total amount of overhead allocated to each machine hour at NUBD Co. would be (round-off to 2 decimal places)
If NUBD Co. uses the step-down method of allocating service costs beginning with quality control, the maintenance costs allocated to the Assembly Department would be
If NUBD Co. uses the direct method of allocating service department costs, the total service costs allocated to the assembly department would be
If NUBD Co. uses the reciprocal method of allocating service costs, the total amount of quality control costs (rounded to the nearest peso) to be allocated to the other departments would be
Transcribed Image Text:The managers of NUBD Co. are discussing ways to allocate the cost of service departments such
as Quality Control and Maintenance to the production departments. To aid them in this discussion
the controller has provided the following information:
Quality
Control
Maintenance Machining Assembly
Total
Budgeted
overhead costs
before allocation
P 350,000
P200,000 P400,000
P300,000 P1,250,000
Budgeted
machine hours
50,000
25,000
50,000
Budgeted direct
labor hours
25,000
Budgeted hours
of service:
Quality Control
Maintenance
35,000
40,000
7,000
21,000
18,000
7,000
12,000
10,000
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