The Madalilangto Ink Company prepared the following table for the year 2019: Service Departments Production Departments H V Rent 250,000 100,000 350,000 770,000 15,000 23,000 9,500 145,000 14,500 30,000 7,000 7,000 7,500 6,000 97,500 60,000 Repairs 120,500 420,000 Fuel Indirect Labor Indirect 157,500 100,000 94,500 170,000 1. 61,000 56,500 127,000 Materials Heat and Light Depreciation Miscellaneous Following is the result of the factory survey regarding service departments: [A] Department U services G, V, and W in the ratio of 2:1:1, respectively; [B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively; icj Department W services Department H and G in the ratio of 3:1, respectively. 202,500 94,000 60,000 151,200 71,300 50,500 9,000 3,000 6,000 1,500 7,500 2,000 500 500 500 a. Compute for the total Factory overhead cost of H Department, if the company uses the step method in allocating service department costs and distributes the cost of Department U first, Department V second and finally Department W. b. Compute for the Factory overhead rate of Department G if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours.
The Madalilangto Ink Company prepared the following table for the year 2019: Service Departments Production Departments H V Rent 250,000 100,000 350,000 770,000 15,000 23,000 9,500 145,000 14,500 30,000 7,000 7,000 7,500 6,000 97,500 60,000 Repairs 120,500 420,000 Fuel Indirect Labor Indirect 157,500 100,000 94,500 170,000 1. 61,000 56,500 127,000 Materials Heat and Light Depreciation Miscellaneous Following is the result of the factory survey regarding service departments: [A] Department U services G, V, and W in the ratio of 2:1:1, respectively; [B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively; icj Department W services Department H and G in the ratio of 3:1, respectively. 202,500 94,000 60,000 151,200 71,300 50,500 9,000 3,000 6,000 1,500 7,500 2,000 500 500 500 a. Compute for the total Factory overhead cost of H Department, if the company uses the step method in allocating service department costs and distributes the cost of Department U first, Department V second and finally Department W. b. Compute for the Factory overhead rate of Department G if the company uses the direct method and the producing departments using the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours.
Chapter2: Developing The Business Idea
Section: Chapter Questions
Problem 1aM
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![The Madalilangto Ink Company prepared the following table for the year 2019:
Production
Service Departments
Departments
V
Rent
250,000
770,000
15,000
23,000
9,500
14,500
7,000
Repairs
100,000
120,500
30,000
7,500
Fuel
350,000
420,000
7,000
6,000
145,000
97,500
Indirect Labor
157,500
170,000
100,000
1.
Indirect
61,000
56,500 127,000
94,500
60,000
Materials
Heat and Light
151,200
71,300
50,500
Following is the result of the factory survey regarding service departments:
[A] Department U services G, V, and W in the ratio of 2:1:1, respectively;
[B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively;
[C] Department W services Department H and G in the ratio of 3:1, respectively.
202,500
94,000
60,000
9,000
6,000
7,500
3,000
Depreciation
Miscellaneous
1,500
500
2,000
500
500
a. Compute for the total Factory overhead cost of H Department, if the company uses the step method in
allocating service department costs and distributes the cost of Department U first, Department V second
and finally Department W.
b. Compute for the Factory overhead rate of Department Gif the company uses the direct method and the
producing departments using the following bases: Department H, 100,000 direct labor hours; and
Department G, 195,0o00 direct labor hours.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1ca76d08-f5f5-4195-ac2d-1e23ded113e9%2Fb6538443-5b1f-4125-8b2d-0dcd9e1aa610%2Fnnxl51_processed.png&w=3840&q=75)
Transcribed Image Text:The Madalilangto Ink Company prepared the following table for the year 2019:
Production
Service Departments
Departments
V
Rent
250,000
770,000
15,000
23,000
9,500
14,500
7,000
Repairs
100,000
120,500
30,000
7,500
Fuel
350,000
420,000
7,000
6,000
145,000
97,500
Indirect Labor
157,500
170,000
100,000
1.
Indirect
61,000
56,500 127,000
94,500
60,000
Materials
Heat and Light
151,200
71,300
50,500
Following is the result of the factory survey regarding service departments:
[A] Department U services G, V, and W in the ratio of 2:1:1, respectively;
[B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively;
[C] Department W services Department H and G in the ratio of 3:1, respectively.
202,500
94,000
60,000
9,000
6,000
7,500
3,000
Depreciation
Miscellaneous
1,500
500
2,000
500
500
a. Compute for the total Factory overhead cost of H Department, if the company uses the step method in
allocating service department costs and distributes the cost of Department U first, Department V second
and finally Department W.
b. Compute for the Factory overhead rate of Department Gif the company uses the direct method and the
producing departments using the following bases: Department H, 100,000 direct labor hours; and
Department G, 195,0o00 direct labor hours.
Transcribed Image Text:ATOZ company's product is manufactured in two departments. Units are inspected at the end of the
production process in the first department. Data related to the month of May are: WIP.beg (60% materials,
35% labor, and 25% FOH), 1,000 units; started in process this period, 9,000 units; WIP,end (100% materials,
75% labor and 50% FOH), 1,500 units. Cost data follows:
WIP,beg
Cost this Month
Materials
P1,260
P36,240
Labor
770
10,780
FOH
1,400
21,725
1. Compute for the cost per equivalent unit using average costing.
2. Compute for the equivalent units of production using FIFO.
3. Compute for the cost of WIP, end using Average costing.
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