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.

Transcribed Image Text:

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 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

Answer rating: 100% (QA)

1 Maintenance overhead rate Maintenance overhead cost Maintenance hours P12000400 P30 per hour Engin... View the full answer