Question
Round off your final answer to the nearest whole number | Cost Accounting | Overhead & Process Costing Required: 1. Compute for the overhead rate
Round off your final answer to the nearest whole number | Cost Accounting | Overhead & Process Costing
Required:
1. Compute for the overhead rate for department A if the company uses the direct method in allocating service department costs and the department applies overhead based on 18,000 direct labor hours.
2. Under the reciprocal method, what would be the total Engineering department cost?
3. Assume that department C applies factory overhead based on units produced with an estimate of 5,000 units for the period. The actual units produced for the current period was 4800. If the company uses the step method in allocating service department costs, how much is the applied factory overhead of department C.
Etona company has two service departments and three producing departments. The following data was made available: Service Departments Maintenance Producing Departments Engineering A B C Maintenance Hrs 400 800 200 200 Engineering Hrs 400 800 Overhead Costs P12,000 P54,000 P80,000 400 P90,000 400 P50,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 Maintenance overhead rate Maintenance overhead cost Maintenance hours P12000400 P30 per hour Engin...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started