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G. Tiger Airlines has two operating departments (Freight and Passenger) and two service centers (Maintenance and Administration). The ff. table shows June 2011 data: Service

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G. Tiger Airlines has two operating departments (Freight and Passenger) and two service centers (Maintenance and Administration). The ff. table shows June 2011 data: Service Centers Operating Departments Maintenance Administration Freight Passenger Costs P630,000 P950,000 P1,800,500 P5,260,470 Labor hou 8,000 9,000 30,000 51,000 Number of 40 50 80 200 employees Maintenance costs are allocated using labor hours, while Administration costs are allocated using number of employees. 12. Using the reciprocal method, how much service department costs will be allocated to Freight Operating Department?H. Delerico Manufacturing Company makes a variety of backpacks. The activity centers and budgeted information for factory overhead for the year are: Activity center Overhead cost Cost Driver Activity center rate Materials handling 3,000,000 Weight of materials P3.00 per pound Cutting 13,000,000 Number of shapes P30.00 per shape Assembly 46,000,000 Direct labor hours P120.00 per labor hour Sewing 12,000,000 Machine hours P80.00 per machine hour Two styles of backpacks were produced in December, the EasyRider and the Overnighter. The quantities and other operating data for the month are: EasyRider Overnighter Direct materials costs P150,000 P200,000 Direct labor cost P300,000 P50,000 Direct materials weight in pounds 50,000 15,000 Number of shapes 35,000 15,000 Assembly direct labor hours 7,500 1,200 Sewing machine hours 12,500 1,800 Units produced 5,000 1,000 13. Calculate the cost per unit for EasyRider. 14. Calculate the cost per unit for Overnighter.E. The Blondie Dye Company manufactures hair rinses and colourings. Direct materials are introduced into production at the 50% stage of completion in Dept. A. Direct labor and factory overhead are incurred evenly throughout the process. Because of the timing of certain chemical processes, units are often at diff. stages of completion. Management uses the fifo costing method in an effort to analyze costs. Beginning units in process in Dept. A for May were at the ff. stages of completion. 40% of the units were 10% complete. 15% of the units were 40% complete. 20% of the units were 55% complete. 25% of the units were 70% complete. Beginning units in process amounted to 26,000 units, with a total costs of P37,700. During May, 68,000 units were started in process. The ff. costs were incurred: Direct materials, P47,092; Direct labor, P34,658; and factory overhead, P51,987. Ending units in process for May amounted to 6,000 units. They were at the ff. stages of completion: 35% of the units were 25% complete. 50% of the units were 45% complete. 10% of the units were 75% complete. 5% of the units were 95% complete. There were no spoiled units during the month. 9. Determine the cost of work in process inventory ending.F. Korecase Instrument Company manufactures gauges for construction machinery. The company has two production departments: Molding and Assembly. There are three service departments: Maintenance, Personnel, and Computer Aided Design(CAD). The usage of these service departments output and their budgeted costs during 2011 are as follows: Provision of Service Output in 2011 (in hours of service) Provider of Service User of Service Personnel Maintenance CAD Personnel - Maintenance 500 1 CAD 500 500 Molding 4000 3500 4500 Assembly 5000 4000 1500 Total 10000 8000 6000 The budgeted costs in Korecase Instrument Company's service departments during 2011 are as follows: Personnel Maintenance CAD Variable 50,000 80,000 50,000 Fixed 200,000 150,000 300,000 Total 250,000 230,000 350,000 10. Use the direct method to allocate Korecase Instrument Company's service department costs to its production departments. Determinde the share of Molding Department. 11. Determine the proper sequence to use in allocating the firm's service department costs by the step-down method and use the step-down method to allocate the company's service department costs. Determine the share of Assembly Department

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