4. Direct and Indirect costs. The total factory costs of Macopa Company for the month of...
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4. Direct and Indirect costs. The total factory costs of Macopa Company for the month of September showed the following, among others: Direct materials Direct labor Depreciation for machinery and equipment Factory supplies Allocated costs from corporate headquarter Supervisory salaries Department A Departmen t B P 800,000 P 1,200,000 600,000 660,000 140,000 220,000 20,000 60,000 130,000 190,000 48,000 72,000 Repairs and maintenance (allocated on the basis of number of hours spent to maintain machine, 120 hours for A and 280 hours for B), P 250,000. Factory rent-building (allocated on the basis of floor space, 20% to A and 80% to B), P 200,000. Plant executive's salaries (allocated on the basis of hours spent to each department 40% to A and 60% to B), P 380,000. In an event a department is discontinued, the supervisors assigned to the department shall be dismissed. The factory plant is covered by a 20-year lease agreement. Required: Determine the following for each department: 1. Direct variable costs. 2. Total controllable direct fixed costs. 3. Total noncontrollable direct fixed costs. 4. Total direct fixed costs. 5. Total direct costs. 6. Total indirect costs. 7. Total unavoidable costs in case of production stoppages. 4. Direct and Indirect costs. The total factory costs of Macopa Company for the month of September showed the following, among others: Direct materials Direct labor Depreciation for machinery and equipment Factory supplies Allocated costs from corporate headquarter Supervisory salaries Department A Departmen t B P 800,000 P 1,200,000 600,000 660,000 140,000 220,000 20,000 60,000 130,000 190,000 48,000 72,000 Repairs and maintenance (allocated on the basis of number of hours spent to maintain machine, 120 hours for A and 280 hours for B), P 250,000. Factory rent-building (allocated on the basis of floor space, 20% to A and 80% to B), P 200,000. Plant executive's salaries (allocated on the basis of hours spent to each department 40% to A and 60% to B), P 380,000. In an event a department is discontinued, the supervisors assigned to the department shall be dismissed. The factory plant is covered by a 20-year lease agreement. Required: Determine the following for each department: 1. Direct variable costs. 2. Total controllable direct fixed costs. 3. Total noncontrollable direct fixed costs. 4. Total direct fixed costs. 5. Total direct costs. 6. Total indirect costs. 7. Total unavoidable costs in case of production stoppages.
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