2.Carmichael Manufacturing Company has two production departments (Fabrication and Assembly) and three service departments (General Factory...
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2.Carmichael Manufacturing Company has two production departments (Fabrication and Assembly) and three service departments (General Factory Administration, Factory Maintenance, and Factory Cafeteria). A summary of the year's costs and other data for each department prior to allocation of service department costs appears below. PRODUCING SERVICE General Factory Fabrication Labor costs PI,950,000 Factory Assembly P2,050,000 Factory Administration Maintenance Cafeteria P90,000 P82,100 P87,000 Material costs P3.130.000 P 950,000 - P65.000 P91,000 Overhead P1,650,000 PI,850,000 P70.000 P56,100 P62,000 Direct labor hours 562,500 437,500 31.000 27,000 42,000 Number of employees 280 200 12 8 20 Square footage occupied 88.000 72.000 1.750 2.000 4.800 2A. The costs of the General Factory Administration Department, Factory Maintenance Department, and Factory Cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. There are no manufacturing overhead variances. Assuming that Carmichael elects to distribute service department costs under the direct method of cost allocation, what is the amount of Factory Maintenance Department costs that would be allocated to the Fabrication Department? (round all final calculations to the nearest peso). 2B. What is the amount of General Factory Administration Department costs that would be allocated to the Assembly Department under the direct method? (round all final calculations to the nearest peso) 2C. Assuming that Carmichael elects to distribute service department costs to other service departments using the step method of cost allocation and that the order of distribution is based on the peso amount of costs originating in the service departments, how much of the total Factory Cafeteria cost would be allocated to the Factory Maintenance Department? (Round all final calculations to the nearest peso.) 2D. How much of the Factory Maintenance Department costs would be allocated to the Factory Cafeteria under the step method, assuming that the order of distribution is based on the peso amount of costs originating in the service departments? (Round all final calculations to the nearest peso.) 2.Carmichael Manufacturing Company has two production departments (Fabrication and Assembly) and three service departments (General Factory Administration, Factory Maintenance, and Factory Cafeteria). A summary of the year's costs and other data for each department prior to allocation of service department costs appears below. PRODUCING SERVICE General Factory Fabrication Labor costs PI,950,000 Factory Assembly P2,050,000 Factory Administration Maintenance Cafeteria P90,000 P82,100 P87,000 Material costs P3.130.000 P 950,000 - P65.000 P91,000 Overhead P1,650,000 PI,850,000 P70.000 P56,100 P62,000 Direct labor hours 562,500 437,500 31.000 27,000 42,000 Number of employees 280 200 12 8 20 Square footage occupied 88.000 72.000 1.750 2.000 4.800 2A. The costs of the General Factory Administration Department, Factory Maintenance Department, and Factory Cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. There are no manufacturing overhead variances. Assuming that Carmichael elects to distribute service department costs under the direct method of cost allocation, what is the amount of Factory Maintenance Department costs that would be allocated to the Fabrication Department? (round all final calculations to the nearest peso). 2B. What is the amount of General Factory Administration Department costs that would be allocated to the Assembly Department under the direct method? (round all final calculations to the nearest peso) 2C. Assuming that Carmichael elects to distribute service department costs to other service departments using the step method of cost allocation and that the order of distribution is based on the peso amount of costs originating in the service departments, how much of the total Factory Cafeteria cost would be allocated to the Factory Maintenance Department? (Round all final calculations to the nearest peso.) 2D. How much of the Factory Maintenance Department costs would be allocated to the Factory Cafeteria under the step method, assuming that the order of distribution is based on the peso amount of costs originating in the service departments? (Round all final calculations to the nearest peso.)
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Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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