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follows: Quickies Services, Inc. shows the following estimated operating statistics for this year: Service Centers: Cafeteria Personnel Cafeteria Personnel Dept. Q Dept.S Dept. T 80 20 Personnel Processed 10 20 15 Producing Departments Dept. Q Dept. S Dept. T Budgeted overhead costs for the year and the cost drivers for each departments Overhead Cost Driver P200,000 No. of employees 100,000 No. of personnel processed 800,000 300,000 No. of employees 900 600 250 25 50 Direct labor Hours 600,000 100,000 DLH 150,000 DLH 50,000 DLH Direct labor hours Direct labor hours Direct labor hours Required: (for peso value round off to P1.00; two decimal places for percentage) a. Using step-down method, allocate service department costs to producing b. departments and calculate the overhead rates for each producing departments Using reciprocal method allocates service department costs to producing departments and calculate the overhead rates for each producing departments

follows: Quickies Services, Inc. shows the following estimated operating statistics for this year: Service Centers: Cafeteria Personnel Cafeteria Personnel Dept. Q Dept.S Dept. T 80 20 Personnel Processed 10 20 15 Producing Departments Dept. Q Dept. S Dept. T Budgeted overhead costs for the year and the cost drivers for each departments Overhead Cost Driver P200,000 No. of employees 100,000 No. of personnel processed 800,000 300,000 No. of employees 900 600 250 25 50 Direct labor Hours 600,000 100,000 DLH 150,000 DLH 50,000 DLH Direct labor hours Direct labor hours Direct labor hours Required: (for peso value round off to P1.00; two decimal places for percentage) a. Using step-down method, allocate service department costs to producing b. departments and calculate the overhead rates for each producing departments Using reciprocal method allocates service department costs to producing departments and calculate the overhead rates for each producing departments

Cornerstones of Cost Management (Cornerstones Series)
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 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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follows: Quickies Services, Inc. shows the following estimated operating statistics for this year: Service Centers: Cafeteria Personnel Cafeteria Personnel Dept. Q Dept.S Dept. T Personnel Processed 80 20 10 20 15 Producing Departments Dept. Q Dept. S Dept. T Budgeted overhead costs for the year and the cost drivers for each departments Overhead Cost Driver P200,000 No. of employees 100,000 No. of personnel processed 600,000 800,000 300,000 No. of employees 900 600 250 25 50 Direct labor Hours 100,000 DLH 150,000 DLH 50,000 DLH Direct labor hours Direct labor hours Direct labor hours Required: (for peso value round off to P1.00; two decimal places for percentage) a. Using step-down method, allocate service department costs to producing b. departments and calculate the overhead rates for each producing departments Using reciprocal method allocates service department costs to producing departments and calculate the overhead rates for each producing departments
Transcribed Image Text:follows: Quickies Services, Inc. shows the following estimated operating statistics for this year: Service Centers: Cafeteria Personnel Cafeteria Personnel Dept. Q Dept.S Dept. T Personnel Processed 80 20 10 20 15 Producing Departments Dept. Q Dept. S Dept. T Budgeted overhead costs for the year and the cost drivers for each departments Overhead Cost Driver P200,000 No. of employees 100,000 No. of personnel processed 600,000 800,000 300,000 No. of employees 900 600 250 25 50 Direct labor Hours 100,000 DLH 150,000 DLH 50,000 DLH Direct labor hours Direct labor hours Direct labor hours Required: (for peso value round off to P1.00; two decimal places for percentage) a. Using step-down method, allocate service department costs to producing b. departments and calculate the overhead rates for each producing departments Using reciprocal method allocates service department costs to producing departments and calculate the overhead rates for each producing departments
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