Compute for the total Factory overhead rate of G Department, if the company uses the STEP METHOD in allocating service department costs and distributes the cost of Department U first, Department V second and finally Department W. The producing departments uses the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. The Madalilangto Ink Company prepared the following table for the year 2019:ProductionService DepartmentsDepartmentsVRent250,000770,00015,00023,0009,50014,5007,000Repairs100,000120,50030,0007,500Fuel350,000420,0007,0006,000145,00097,500Indirect Labor157,500170,000100,0001.Indirect61,00056,500 127,00094,50060,000MaterialsHeat and Light151,20071,30050,500Following is the result of the factory survey regarding service departments:[A] Department U services G, V, and W in the ratio of 2:1:1, respectively;[B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively;[C] Department W services Department H and G in the ratio of 3:1, respectively.202,50094,00060,0009,0006,0007,5003,000DepreciationMiscellaneous1,5005002,000500500

Factory Overhead Factory overhead can be defined as the cost which is incurred during the…

The Madalilangto Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G Rent 250,000 770,000 14,500 15,000 23,000 7,000 Repairs Fuel 120,500 420,000 100,000 30,000 7,500 350,000 157,500 9,500 145,000 127,000 7,000 6,000 Indirect Labor 170,000 100,000 97,500 60,000 1. Indirect 61,000 56,500 94,500 Materials Heat and Light Depreciation Miscellaneous Following is the result of the factory survey regarding service departments: [A] Department U services G, V, and W in the ratio of 2:1:1, respectively; [B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively; (C] Department W services Department H and G in the ratio of 3:1, respectively. 202,500 151,200 9,000 6,000 7,500 94,000 60,000 71,300 50,500 3,000 1,500 2,000 500 500 500

The Madalilangto Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G Rent 250,000 770,000 14,500 15,000 23,000 7,000 Repairs Fuel 120,500 420,000 100,000 30,000 7,500 350,000 157,500 9,500 145,000 127,000 7,000 6,000 Indirect Labor 170,000 100,000 97,500 60,000 1. Indirect 61,000 56,500 94,500 Materials Heat and Light Depreciation Miscellaneous Following is the result of the factory survey regarding service departments: [A] Department U services G, V, and W in the ratio of 2:1:1, respectively; [B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively; (C] Department W services Department H and G in the ratio of 3:1, respectively. 202,500 151,200 9,000 6,000 7,500 94,000 60,000 71,300 50,500 3,000 1,500 2,000 500 500 500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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