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# PILAR Manufacturing Co. has three producing departments (P, I, & L), and two service departments (A&R). The total estimated departmental expenses for 2021 before

## PILAR Manufacturing Co. has three producing departments (P, I, & L), and two service departments (A&R). The total estimated departmental expenses for 2021 before distribution of service department expenses; the bases for departmental rates and distribution of service expenses are given next page: Dept. P P90,000 Machine hours Dept. I 120,000 Direct labor hours Dept. L $80,000 Direct labor cost Dept. A 54,000 Space provided Dept. R 47,000 Number of employees The factory survey made at the beginning of 2021 shows: Dept. Floor Area Number of Estimated Estimated Estimated (sq. m.) employees DL hours Machine hours P 350 32 40,000 30,000 DL cost P650,000 I 350 35 50,000 15,000 900,000 L 200 27 30,000 10,000 500,000 A 6 R 100 Use the above data to answer A, B, C, and D as follows: A. Required computations: Total expenses of the producing departments after the distribution of the service departments expenses, using the direct method: 1. Dept. P 2. Dept. I 3. Dept. L B. Required computations. What should be the departmental overhead rates based on "A"? Round answers to nearest centavo, and rates to 2 decimal places (ex. 12.568 % will be rounded to 12.57%) 4. Dept. P 5. Dept. I 6. Dept. L C. Required computations. Total expenses of the service departments, using the algebraic method. 7. Dept. A (Round answers to the nearest peso). 8. Dept. R D. Required computations. Total expenses of the producing departments after the distribution of the service departments expenses, using the algebraic method. (Round answers to the nearest peso). 9. Dept. P 10. Dept. I 11. Dept. L FAST DELIVERY SERVICES delivers packages in the city area and hires drivers to make deliveries. Variable costs has been budgeted and an average standard time has been established to make a delivery. According to the standards, it should be possible to make a delivery in an hour. The office is located in the center of the city and it takes as much time to deliver to one location as it does to another. Fixed cost has been budgeted at P288,000 for the year. Under normal conditions, the company expects to make 15,000 deliveries in a year. The variable cost has been budgeted at P50 per hour. Last year, the company made 12,500 deliveries in 14,000 hours, and incurred a total cost of P860,000, including the fixed cost as budgeted. Use the above data to answer E, F, and G as follows, next page: E. Required computations. Using a flexible delivery cost budget, compute the following, in hours: 12. Total normal time 14. Total standard time 13. Total actual time F. Required computations. Using the same flexible delivery cost budget, how much is the total budget allowed the following: 15. Normal time 16. Actual time 17. Standard time G. Required computations. Using the same flexible delivery cost budget, compute for: 18. Total applied delivery cost 19. Overall variance* 20. Controllable (or budget) variance* 21. Uncontrollable (or volume) variance* *Indicate if favorable, or unfavorable to get credit. RELIABLE TYRING SERVICE accore and the general

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