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Sky Castle Manufacturing Company has two service departments, human resources and office services. It also has two production departments, assembly and finishing. The following information

Sky Castle Manufacturing Company has two service departments, human resources and office services. It also has two production departments, assembly and finishing. The following information is made available for all of the departments as provided in the table.

Costs of the human resource department is allocated based on the number of employees while costs of the office services department is allocated based on the relevant hours.

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Budgeted costs Actual costs Relevant hours Employees Service Human Resources P376,200 381,600 Production Office Services Assembly Finishing P629,500 P1,170,000 P1,335,000 609,650 1,233,600 1,152,000 3,060 hrs. 6,000 hrs. 6,440 hrs. 8,500 hrs. 10 21 15 24

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