PLEASE ANSWER PO AND SHOW SOLUTION The following information relates to Fay Corporation for the past accounting period.Producing Departments Service DepartmentsD.P20,000Direct costsProportion of service by A to:BP15,000P80,000P60,00010%C60%D 30%Proportion of service by B to:A30%C20%50%5. Using the algebraic method, department A’s cost allocated to department C is:a. P48,000b. P58,800с. Р60,619d. P98,000 6. .Using the algebraic method, department B’s cost allocated to department C is:а. Р 7,794b. P13,192C. P14,021d. P29,021

This question deals with the algebraic(Reciprocal) method of cost allocation. In this method service…

The following information relates to Fay Corporation for the past accounting period. Producing Departments Service Departments C P15,000 В Direct costs P20,000 P80,000 P60,000 Proportion of service by A to: B 10% C 60% 30% Proportion of service by B to: 30% A 20% 50% C D 5. Using the algebraic method, department A's cost allocated to department C is: а. Р48,000 b. P58,800 с. Рб0,619 d. P98,000

The following information relates to Fay Corporation for the past accounting period. Producing Departments Service Departments C P15,000 В Direct costs P20,000 P80,000 P60,000 Proportion of service by A to: B 10% C 60% 30% Proportion of service by B to: 30% A 20% 50% C D 5. Using the algebraic method, department A's cost allocated to department C is: а. Р48,000 b. P58,800 с. Рб0,619 d. P98,000

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 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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