1. A hospital has P100,000 expected utility bill this year. The janitorial, accounting, and orderlies departments...

   

 

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1. A hospital has P100,000 expected utility bill this year. The janitorial, accounting, and orderlies departments are service departments servicing the operating, hospital rooms, and laboratories departments. Floor spaces assigned to each department are as follows: Department Janitorial Accounting Orderlies Operating Hospital rooms Laboratories Square Footage 1,000 2,000 7,000 4,000 30,000 6,000 How much of the P100,000 will eventually become the hospital rooms department's total costs, assuming a direct allocation based on square footage is used? 2. Joecas Corporation distributed service department overhead costs directly to producing departments without allocation to the other service department. Information for the month of June is as follows Overhead costs Services provided to departmenta Maintenance Utilities Producing-A Producing-B Service Departments Maintenance P20,000 20% 40% 40% Utilities P10,000 10% 30% 60% What is the amount of Maintenance Department costs distributed to Producing- - A department for June? Number 3 and 4 are based on the following data: The computer complex, which offers two main services: (1) time on a time-shared computer and (2) proprietary computer programs. Computer time is provided by the Operating Department (OD), and programs are written by the programming Department (PD). Usually, the Operating Department spends P4,500 and the Programming Department spends P2,500. The percentage of each service used by each department for the year 2010 is presented below: on User OD PD Sold to customers 30% 70% PD 40% 60% 3. Under the step method, what is the cost of the computer time and the computer program for sale? 4. Under the reciprocal method, what is the solution to the service cost allocations problem? 1. A hospital has P100,000 expected utility bill this year. The janitorial, accounting, and orderlies departments are service departments servicing the operating, hospital rooms, and laboratories departments. Floor spaces assigned to each department are as follows: Department Janitorial Accounting Orderlies Operating Hospital rooms Laboratories Square Footage 1,000 2,000 7,000 4,000 30,000 6,000 How much of the P100,000 will eventually become the hospital rooms department's total costs, assuming a direct allocation based on square footage is used? 2. Joecas Corporation distributed service department overhead costs directly to producing departments without allocation to the other service department. Information for the month of June is as follows Overhead costs Services provided to departmenta Maintenance Utilities Producing-A Producing-B Service Departments Maintenance P20,000 20% 40% 40% Utilities P10,000 10% 30% 60% What is the amount of Maintenance Department costs distributed to Producing- - A department for June? Number 3 and 4 are based on the following data: The computer complex, which offers two main services: (1) time on a time-shared computer and (2) proprietary computer programs. Computer time is provided by the Operating Department (OD), and programs are written by the programming Department (PD). Usually, the Operating Department spends P4,500 and the Programming Department spends P2,500. The percentage of each service used by each department for the year 2010 is presented below: on User OD PD Sold to customers 30% 70% PD 40% 60% 3. Under the step method, what is the cost of the computer time and the computer program for sale? 4. Under the reciprocal method, what is the solution to the service cost allocations problem?

Answer rating: 100% (QA)

1 To determine the amount of the hospital rooms departments total costs based on square footage allocation we need to calculate the proportion of squa... View the full answer