Using the reciprocal method, the applied factory overhead of the assembly department if it used 24,700 machine hours is closest to: Galinganmo Corp has two service departments and two producing departments. The following are data available for the year 2021: FOH cost Estimated Area Labor Hrs 2,900 1,100 Occupied 1,200 1,500 P129,000 105,000 416,000 380,000 The maintenance costs are allocated based on estimated labor hours Maintenance Security Cutting Assembly 2,000 1,900 3,200 1,600 and security is allocated based on space occupied. The producing department uses machine hours with 50,000 for cutting and 25,000 for assembly to determine the factory overhead rate. O P498,693 P259,350 O P502,645 P497,211 None of the above

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 8E: A manufacturing company has two service and two production departments. Building Maintenance and...
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Using the reciprocal method, the applied
factory overhead of the assembly
department if it used 24,700 machine
hours is closest to:
Galinganmo Corp has two service departments and two producing
departments. The following are data available for the year 2021:
FOH cost
Estimated
Area
Labor Hrs
2,900
1,100
Occupied
1,200
1,500
1,900
P129,000
105,000
Maintenance
Security
Cutting
Assembly
The maintenance costs are allocated based on estimated labor hours
and security is allocated based on space occupied. The producing
department uses machine hours with 50,000 for cutting and 25,000 for
assembly to determine the factory overhead rate.
416,000
2,000
380,000
1,600
3,200
O P498,693
O P259,350
P502,645
O P497,211
None of the above
Transcribed Image Text:Using the reciprocal method, the applied factory overhead of the assembly department if it used 24,700 machine hours is closest to: Galinganmo Corp has two service departments and two producing departments. The following are data available for the year 2021: FOH cost Estimated Area Labor Hrs 2,900 1,100 Occupied 1,200 1,500 1,900 P129,000 105,000 Maintenance Security Cutting Assembly The maintenance costs are allocated based on estimated labor hours and security is allocated based on space occupied. The producing department uses machine hours with 50,000 for cutting and 25,000 for assembly to determine the factory overhead rate. 416,000 2,000 380,000 1,600 3,200 O P498,693 O P259,350 P502,645 O P497,211 None of the above
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