Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that X Company has three service departments A,B,C and two producing departments X and Y. Percentage of Service Total Costs A B P100,000

 

Assume that X Company has three service departments A,B,C and two producing departments X and Y. Percentage of Service Total Costs A B P100,000 P200,000 B 25% -- P300,000 C- A REQUIRED: 1. Determine the service department costs allocated to each producing departments under the following methods: B 00 a. Direct Method b. Reciprocal Method XY XY C Total A 00 B C Total A c. Step-down Method XY B C V 20% 10% 30% 40% 10% 18% 47% 20% 80% -- Total C X Y 2. Assuming that the factory overhead costs of X and Y before allocation were P100,000 and P200,000 respectively, determine the total costs of X a under each method. a. Direct Method b. Reciprocal Method c. Step-down Method X

Step by Step Solution

3.33 Rating (138 Votes )

There are 3 Steps involved in it

Step: 1

Answer a Direct Method X Y A P 85714 P 114286 B 33333 66667 C 60000 240000 Total 179047 420953 Explanation Under the direct method the costs of service departments are allocated directly to the produc... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Accounting questions