The following information relates to Fay Corporation for the past accounting period.Producing Departments Service DepartmentsD.P20,000BC.P15,000Direct costsP80,000P60,000Proportion of service by A to:B10%60%30%Proportion of service by B to:30%20%50%5. Using the algebraic method, department A's cost allocated to department C is:a. P48,000b. P58,800с. Р60,619d. 998,000 and both producing departments. (Take all calculations to four decimal placesCost Accounting246MULTIPLE CHOICE-PROBLEMSThe following information for Ram Corporation relates to questions 1 and 2Service departments ( total estimated costs)Building and ground maintenanceStoreroomP 21,960.4015,990.00Producing departments (estimated factory overhead costsDepartment ADepartment B42,000.0051,000.00Bldg. and ground maintenanceStoreroomEst. DL Hrs. Est. Sq.Ft. No. of Requisitions15040750130Department ADepartment B1,9251,2008902.3302,5001,400The base to be used for allocating the cost of Building and ground maintenance issquare feet and for the storeroom cost is the number of requisitions. Direct labor hoursare used to compute the producing departments' factory overhead application rawte1. Using the direct method, what is Department A's factory overhead rate?a. P 30.30b. P 47.46c. P 55.70d. P 60.532. Using the algebraic method, compute for the Building and Grounds MaintenanceDepartment total amount to be allocated to the Storeroom Service Departmentand both producing departments. (Take all calculations to four decimal placesbut round all answers to the nearest peso)al P 21,960b. P22,584c. P23,467d. P24,722

Given, Direct costs of Production department C = P15000 Production department D = P20000 Direct…

The following information relates to Fay Corporation for the past accounting period. Producing Departments Service Departments Direct costs P15,000 P20,000 P80,000 P60,000 Proportion of service by A to: 10% 60% 30% C Proportion of service by B to: 30% C 20% D 50% 5. Using the algebraic method, department A's cost allocated to department C is: a. Р48,000 b. P58,800 с. Р60,619 d. P98,000

The following information relates to Fay Corporation for the past accounting period. Producing Departments Service Departments Direct costs P15,000 P20,000 P80,000 P60,000 Proportion of service by A to: 10% 60% 30% C Proportion of service by B to: 30% C 20% D 50% 5. Using the algebraic method, department A's cost allocated to department C is: a. Р48,000 b. P58,800 с. Р60,619 d. P98,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 1CMA

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