Problem 1 Kare Foods Company specializes in the production of frozen dinners. The first of the two operating departments cooks the food. The second is responsible for packaging and freezing the dinners. The dinners are sold by the case, each case containing 25 dinners. Two support departments provide support for Kare's operating units: Maintenance and Power. Budgeted data for the coming quarter are given below. The company does not separate fixed and variable costs. Particulars Support Departments Producing Departments Maintenance Power Cooking Packaging and Freezing Overhead Costs P 340,000 P200,000 P75,000 P55,000 Machine Hours 40,000 40,000 20,000 Kilowatt Hours 20,000 100,000 80,000 Direct Labor Hours 5,000 30,000 The predetermined rate for Cooking is computed on the basis of machine hours; direct labor hours are used for Packaging and Freezing. The prime costs for one case of standard dinner total P16. It takes two machine hours to produce a case of dinners in the Cooking Department and 0.5 direct labor hour to process a case of standard dinners in the Packaging and Freezing Department. Recently, the Air Force has requested a bid on a three-year contract that will supply standard frozen dinners to Minuteman missile officers and staff on duty in the field. The locations of the missile sites were remote, and the Air Force had decided that frozen dinners were the most economical means of supplying food to personnel on duty. The bidding policy of Kare Foods is full manufacturing costs plus 20%. Assume that the lowest bid of the other competitors is P48.80 per case. Requirements: 1. The amount of allocated Maintenance Overhead to Cooking using direct method. 2. The amount of allocated Maintenance Overhead to Cooking using step method. 3. The amount of allocated Maintenance Overhead to Cooking using reciprocal method. 4. The amount of allocated Power Overhead to Cooking using direct method. 5. The amount of allocated Power Overhead to Cooking using step method. 6. The amount of allocated Power Overhead to Cooking using reciprocal method. 7. The amount of allocated Maintenance Overhead to Packaging and Freezing using direct method. 8. The amount of allocated Maintenance Overhead to Packaging and Freezing using step method. 9. The amount of allocated Maintenance Overhead to Packaging and Freezing using reciprocal method. 10. The amount of allocated Power Overhead to Packaging and Freezing using direct method. 11. The amount of allocated Power Overhead to Packaging and Freezing using step method. 12. The amount of allocated Power Overhead to Packaging and Freezing using reciprocal method. 13. Kare's Bid Price using direct method. 14. Kare's Bid Price using step method. 15. Kare's Bid Price using reciprocal method