Roque Press has the service departments (administration and an and two operating departments (college texts and professional publications). Following are the direct costs and allocation bases for each of these areas: Department Administration Editorial College texts Professional publications Direct Costs P 450,000 350,000 2,250,000 950,000 a. P2,250,000 b. P2,702,566 c. P2,493,964 d. P2,458,602 ALLOCATION BASES Pesos of Assets Employed P 620,000 144,000 1,200,000 1,056,000 Number of Employees 10 8555 35 Company management has decided to allocate administration and editorial costs using the pesos of assets employed and number of employees, respectively. Using the reciprocal (algebraic) method: 29. What is the total operating cost after allocation of college textbooks?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Roque Press has the service departments (administration and an
and two operating departments (college texts and professional
publications). Following are the direct costs and allocation bases for each
of these areas:
Department
Administration
Editorial
College texts
Professional publications
Direct
Costs
P 450,000
350,000
2,250,000
950,000
a. P2,250,000
b. P2,702,566
c. P2,493,964
d. P2,458,602
ALLOCATION BASES
Pesos of Assets
Employed
P 620,000
144,000
1,200,000
1,056,000
Number of
Employees
10
8555
35
Company management has decided to allocate administration and
editorial costs using the pesos of assets employed and number of
employees, respectively.
Using the reciprocal (algebraic) method:
29. What is the total operating cost after allocation of college textbooks?
Transcribed Image Text:Roque Press has the service departments (administration and an and two operating departments (college texts and professional publications). Following are the direct costs and allocation bases for each of these areas: Department Administration Editorial College texts Professional publications Direct Costs P 450,000 350,000 2,250,000 950,000 a. P2,250,000 b. P2,702,566 c. P2,493,964 d. P2,458,602 ALLOCATION BASES Pesos of Assets Employed P 620,000 144,000 1,200,000 1,056,000 Number of Employees 10 8555 35 Company management has decided to allocate administration and editorial costs using the pesos of assets employed and number of employees, respectively. Using the reciprocal (algebraic) method: 29. What is the total operating cost after allocation of college textbooks?
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