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PILAR Manufacturing Co. has three producing departments (P. 1. & L.), and two service departments (A&R). The total estimated departmental expenses for 2021 before distribution
PILAR Manufacturing Co. has three producing departments (P. 1. & L.), and two service departments (A&R). The total estimated departmental expenses for 2021 before distribution of service department expenses, the bases for departmental rates and distribution of service expenses are given next page: Dept. P Dept. 1 Dept. 1 Dept. A Dept. R P90,000 120,000 80,000 36,000 47,000 Machine hours Direct labor hours Direct labor cost Space provided Number of employees The factory survey made at the beginning of 2021 shows: Dept. Floor Area Number of Estimated (sq. m.) employees DL Lours P 350 32 40,000 1 350 35 50,000 L 200 27 30,000 A 6 R 100 Estimated Machine hours 30,000 15,000 10,000 Estimated DL cost P650,000 900,000 500,000 Use the above data to answer A, B, C, and D as follows: A. Required computations: Total expenses of the producing departments after the distribution of the service departments expenses, using the direct method: 1. Dept. P 2. Dept. 1 3. Dept. L B. Required computations. What should be the departmental overhead rates based on "A"? Round answers to nearest centavo, and rates to 2 decimal places (ex. 12.568 % will be rounded to 12.57%) 4. Dept. P 5. Dept. 1 6. Dept. 1 C. Required computations. Total expenses of the service departments, using the algebraic method. 7. Dept. A 8. Dept. R (Round answers to nearest peso). D. Required computations. Total expenses of the producing departments after the distribution of the service departments expenses, using the algebraic method. (Round answers to nearest peso). 9. Dept. P 10. Dept. 1 11. Dept. L
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