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Problem - Vicente Company operates with two producing departments, P1 and P2 and two service departments, S1 and S2. Actual manufacturing overhead before allocation of service department costs, together with the usage of service from the service departments, is as follows:
Department
Actual Manufacturing Overhead Before Allocation of Service Departmental Costs
Services provided by
S1
S2
P1
P40,000
40%
20%
P2
47,600
50
40
14,400
-
18,000
10
P120,000
100%
Required -
1. What is the total manufacturing overhead for P1 (Producing Department 1), after allocating service costs to producing departments. Encode answer following this format: 400000 (sample only not the real answer). NO COMMA, NO PESO SIGN. Use the same format for the succeeding questions.
2. Using data for Vicente, compute the total manufacturing overhead for P1, allocating service department costs stepwise, beginning with department S2. After a department expenses have been allocated, no expenses are assigned back to it.
3. Based on Vicente data: Determine the total manufacturing overhead (including service department costs) for P2 using the reciprocal method.
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