The Ronrox Ink Company prepared the following list in order to determine the factory overhead in...

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The Ronrox Ink Company prepared the following list in order to determine the factory overhead in each department for the year 2013: Departments H G Factory Overhead Cost Total Service Cost Production Service Departments U V W Rent P250,000 P770,000 P15,000 P14,500 P7,000 Repairs Fuel 100,000 120,500 350,000 420,000 23,000 30,000 7,500 9,500 7,000 6,000 Indirect Labor 157,500 170,000 145,000 100,000 97,500 Indirect Material 61,000 56,500 127,000 94,500 60,000 Heat and Light 202,500 151,200 9,000 6,000 7,500 Depreciation 94,000 71,300 3,000 1,500 2,000 Miscellaneous 60,000 50,500 500 500 500 Total P1,275,000 P1,810,000 P332,000 P254,000 P188,000 Additional data needed for allocation of factory overhead: Department U services Department G, V and W in the ratio of 1:2:1, respectively Department V services Department H, G, U and W in the ratio of 3:2:2:3, respectively Department W service Department H and G in the ration of 2:2, respectively Required: Assume Department V is allocated first. W is second and U is last. a. Allocate the total cost of the service departments to the producing departments by using the following methods: (1) Direct (2) Step (3) Reciprocal b. Determine the factory overhead application rates for the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours The Ronrox Ink Company prepared the following list in order to determine the factory overhead in each department for the year 2013: Departments H G Factory Overhead Cost Total Service Cost Production Service Departments U V W Rent P250,000 P770,000 P15,000 P14,500 P7,000 Repairs Fuel 100,000 120,500 350,000 420,000 23,000 30,000 7,500 9,500 7,000 6,000 Indirect Labor 157,500 170,000 145,000 100,000 97,500 Indirect Material 61,000 56,500 127,000 94,500 60,000 Heat and Light 202,500 151,200 9,000 6,000 7,500 Depreciation 94,000 71,300 3,000 1,500 2,000 Miscellaneous 60,000 50,500 500 500 500 Total P1,275,000 P1,810,000 P332,000 P254,000 P188,000 Additional data needed for allocation of factory overhead: Department U services Department G, V and W in the ratio of 1:2:1, respectively Department V services Department H, G, U and W in the ratio of 3:2:2:3, respectively Department W service Department H and G in the ration of 2:2, respectively Required: Assume Department V is allocated first. W is second and U is last. a. Allocate the total cost of the service departments to the producing departments by using the following methods: (1) Direct (2) Step (3) Reciprocal b. Determine the factory overhead application rates for the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours