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Roger Mfg. The managers of Roger Manufacturing are discussing ways to allocate the cost of service departments such as Quality Control and Maintenance to the
Roger Mfg. The managers of Roger Manufacturing are discussing ways to allocate the cost of service departments such as Quality Control and Maintenance to the production departments. To aid them in this discussion the controller has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted OH costs before P350,000 P 200,000 P 400,000 P 300,000 P 1,250,000 allocation Budgeted machine hours 50,000 50,000 Budgeted direct labor hours 5,000 25,000 30,000 Budgeted hours of service: Quality control 7,000 21,000 7,000 35,000 Maintenance 10,000 18,000 12,000 40,000 Refer to Roger Mfg. what is the total service costs allocated to the Assembly Department using the direct method? 0 Refer to Roger Mfg. If the company uses the step-down method of allocating service costs beginning with quality control, the maintenance costs allocated to the Assembly Department would be
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