The following Service d Buile Store Producine

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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PLEASE ANSWER QUESTION NUMBER 2!!!!!!!!! SHOW SOLUTIONS

Est. DL Hrs. Est. Sq.Ft. No. of Requisitions
MULTIPLE CHOICE – PROBLEMS
The following information for Ram Corporation relates to questions 1 and 2
Service departments ( total estimated costs)
Building and ground maintenance
Storeroom
21,960.40
15,990.00
P
Producing departments (estimated factory overhead costs
Departınent A
Department B
42,000.00
51,000.00
750
Bldg. and ground maintenance
Storeroom
150
130
890
40
Department A
Department B
1,925
1,200
2,500
1,400
2.330
The base to be used for allocating the cost of Building and ground maintenance is
square feet and for the storeroom cost is the number of requisitions. Direct labor hous
are used to compute the producing departments' factory overhead application rawte
1. Using the direct method, what is Department A's factory overhead rate?
а. Р 30.30
b. P 47.46
с. Р 55.70
d. P 60.53
Using the algebraic method, compute for the Building and Grounds Maintenance
Department total amount to be allocated to the Storeroom Service Department
and both producing departments. (Take all calculations to four decimal places
but round all answers to the nearest peso)
al P 21,960
b. P22,584
с. Р23,467
d. P24,722
2.
Transcribed Image Text:Est. DL Hrs. Est. Sq.Ft. No. of Requisitions MULTIPLE CHOICE – PROBLEMS The following information for Ram Corporation relates to questions 1 and 2 Service departments ( total estimated costs) Building and ground maintenance Storeroom 21,960.40 15,990.00 P Producing departments (estimated factory overhead costs Departınent A Department B 42,000.00 51,000.00 750 Bldg. and ground maintenance Storeroom 150 130 890 40 Department A Department B 1,925 1,200 2,500 1,400 2.330 The base to be used for allocating the cost of Building and ground maintenance is square feet and for the storeroom cost is the number of requisitions. Direct labor hous are used to compute the producing departments' factory overhead application rawte 1. Using the direct method, what is Department A's factory overhead rate? а. Р 30.30 b. P 47.46 с. Р 55.70 d. P 60.53 Using the algebraic method, compute for the Building and Grounds Maintenance Department total amount to be allocated to the Storeroom Service Department and both producing departments. (Take all calculations to four decimal places but round all answers to the nearest peso) al P 21,960 b. P22,584 с. Р23,467 d. P24,722 2.
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