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KapitLang Company is exploring ways to allocate the cost-of-service departments such as Quality Control and Maintenance to the production departments such as Machining and Assembly.
KapitLang Company is exploring ways to allocate the cost-of-service departments such as Quality Control and Maintenance to the production departments such as Machining and Assembly. The controller of the company has provided the following information (SEE PICTURE BELOW):
35. Under direct method of allocating service department costs, what is the total service cost allocated to the machining and assembly departments, respectively?
Maintenance Quality Control Machining Assembly Total Budgeted OH before allocation P200,000 P350,000 P400,000 P300,000 P1,250,000 Budgeted hours of service quality control 7,000 21,000 7,000 35,000 Budgeted service hours of maintenance 10,000 18,000 12,000 40,000
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