PROBLEM 4 Thermal Corporation has two producing department and two service departments labelled P1, P2, S1, S2 respectively. Direct costs for each department and the proportion of service costs used by various departments are as follows: Proportion of services used by: Cost Center Direct Costs S1 S2 P1 P2 P1 P100,000 P2 P50,000 S1 P15,000 60% 30% 10% S2 P25,000 10% 50% 40% In calculating predetermined overhead rates, machine hours are used as the base in P1 and direct labor hours as the base in P2. P1 P2 Machine hours 50,000 40,000 Direct labor hours 40,000 20.000 In calculating predetermined overhead rates, machine hours are used as the base in P1 and direct labor hours as the base in P2. P1 P2 Machine hours 50,000 40,000 Direct labor hours 40,000 20,000 Requirements: Allocate the service department costs to operating departments and compute the factory overhead rate for P1 and P2 using DIRECT METHOD Round off to two decimal places along the computations, including final answer How much is the Overhead rate of P2 using Direct Method PROBLEM 4 Thermal Corporation has two producing department and two service departments labelled P1, P2, S1, S2 respectively. Direct costs for each department and the proportion of service costs used by various departments are as follows: Proportion of services used by: Cost Center Direct Costs S1 S2 P1 P2 P1 P100,000 P2 P50,000 S1 P15,000 60% 30% 10% S2 P25,000 10% 50% 40% In calculating predetermined overhead rates, machine hours are used as the base in P1 and direct labor hours as the base in P2. P1 P2 Machine hours 50,000 40,000 Direct labor hours 40,000 20,000 Machine hours 50,000 40,000 Direct labor hours 40,000 20,000 Requirements: Allocate the service department costs to operating departments and compute the factory overhead rate for P1 and P2 using ALGEBRA METHOD Round off to two decimal places along the computations, including final answer How much is the Overhead rate of P2 using Algebra Method Thermal Corporation has two producing department and two service departments labelled P1, P2, S1, S2 respectively. Direct costs for each department and the proportion of service costs used by various departments are as follows: Proportion of services used by: Cost Center Direct Costs S1 S2 P1 P2 P1 P100,000 P2 P50,000 S1 P15,000 60% 30% 10% S2 P25,000 10% 50% 40% In calculating predetermined overhead rates, machine hours are used as the base in P1 and direct labor hours as the base in P2. P1 P2 Machine hours 50,000 40,000 Direct labor hours 40,000 20,000 S2 P25,000 10% 50% 40% In calculating predetermined overhead rates, machine hours are used as the base in P1 and direct labor hours as the base in P2. P1 P2 Machine hours 50,000 40,000 Direct labor hours 40,000 20,000 Requirements: Allocate the service department costs to operating departments and compute the factory overhead rate for P1 and P2 using ALGEBRA METHOD Round off to two decimal places along the computations, including final answer How much is the Overhead rate of P1 using Algebra Method Candice Corporation produces reusable Christmas cards in two departments: Printing and Laminating. These departments are supported by two service departments: Personnel and Maintenance. Personnel use the number of employees as an allocation base and Maintenance uses machine hours. The expected level of activity for next quarter is shown below: Overhead costs Printing Department P60,000 Laminating Department P40.000 Personnel P93,000 Maintenance P68,000 No. Of Employees Machine hours Personnel 40 Maintenance 60 Printing 120 60,000 Laminating 180 40,000 Allocations are made in the order shown below. Budgeted costs for next quarter are P93, 000 for Personnel and P68,000 for Maintenance. Printing 120 60,000 Laminating 180 40,000 Allocations are made in the order shown below. Budgeted costs for next quarter are P93, 000 for Personnel and P68,000 for Maintenance. Required: Total amount of service cost that should be allocated to the Laminating Department under Direct Method Candice Corporation produces reusable Christmas cards in two departments: Printing and Laminating. These departments are supported by two service departments: Personnel and Maintenance. Personnel use the number of employees as an allocation base and Maintenance uses machine hours. The expected level of activity for next quarter is shown below: Overhead costs Printing Department P60,000 Laminating Department P40,000 Personnel P93,000 Maintenance P68,000 No. Of Employees Machine hours Personnel 40 Maintenance 60 Printing 120 60,000 Laminating 180 40,000 Allocations are made in the order shown below. Budgeted costs for next quarter are P93, 000 for Personnel and P68,000 for Maintenance. No. Of Employees Machine hours Personnel 40 Maintenance 60 Printing 120 60,000 Laminating 180 40,000 Allocations are made in the order shown below. Budgeted costs for next quarter are P93, 000 for Personnel and P68, 000 for Maintenance. Required: Total amount of service cost that should be allocated to the laminating department under step method Candice Corporation produces reusable Christmas cards in two departments: Printing and Laminating. These departments are supported by two service departments: Personnel and Maintenance. Personnel use the number of employees as an allocation base and Maintenance uses machine hours. The expected level of activity for next quarter is shown below: Overhead costs Printing Department P60,000 Laminating Department P40,000 Personnel P93,000 Maintenance P68,000 No. Of Employees Machine hours Personnel 40 Maintenance 60 Printing 120 60,000 Laminating 180 40,000 Allocations are made in the order shown below. Budgeted costs for next quarter are P93, 000 for Personnel and P68,000 for Maintenance. No. Of Employees Machine hours Personnel 40 Maintenance 60 Printing 120 60,000 Laminating 180 40,000 Allocations are made in the order shown below. Budgeted costs for next quarter are P93, 000 for Personnel and P68, 000 for Maintenance. Required: Total amount of service cost that should be allocated to the Printing Department under Direct Method