What is the factory overhead rate of the cutting department

Assignment Help Cost Accounting
Reference no: EM133064910

Question - Galinganmo Corp has two service departments and two producing departments. The following are data available for the year 2021:

 

FOH cost

Estimated Labor Hrs

Area Occupied

Maintenance

P129,000

2,900

1,200

Security

105,000

1,100

1,500

Cutting

416,000

2,000

1,900

Assembly

380,000

1,600

3,200

The maintenance costs are allocated based on estimated labor hours and security is allocated based on space occupied. The producing department uses machine hours with 50,000 for cutting and 25,000 for assembly to determine the factory overhead rate.

Required -

1. Using the step method, what is the factory overhead rate of the cutting department?

a. P10.54

b. P8.32

c. P20.35

d. P10.43

2. Using the reciprocal method, the applied factory overhead of the assembly department if it used 24,700 machine hours is closest to:

a. P498,693

b. P259,350

c. P502,645

d. P497,211

e. None of the above

Reference no: EM133064910

Questions Cloud

Differences between radical and incremental improvement : Explain the differences between radical and incremental improvement. What are the risks associated with not being creative and innovative?
Contributed to organization or business implementing : What general factors may have contributed to an organization or business implementing this practice?
Project management software tools : Review two project management software tools available in industry.
Prepare a statement of cash flow for the year ended : During the year plant and equipment was sold for $ 25,000 cash. Prepare a statement of cash flow for the year ended
What is the factory overhead rate of the cutting department : The producing department uses machine hours with 50,000 for cutting. What is the factory overhead rate of the cutting department
Prepare the Statement of profit or loss : Prepare the Statement of profit or loss, Statement of changes in equity (Statement of retained earnings) for the year ended 31 December 2020
Compute the price-earnings ratio : Computing the Price-Earnings Ratio - Also, assume that the price per common share for Santiago is $20. Compute the price-earnings ratio
What are the Variable Overhead costs allocated to products : Administrative Expenses $1,800,000. What are the Variable Overhead costs allocated to the three products
What was the total partnership income : Pak's salary is Php 50,000 and Php 25,000 for Ner. If Pak's share in the residual income was P56,000, what was the total partnership income

Reviews

Write a Review

Cost Accounting Questions & Answers

  What are the relevant costs to consider

What are relevant costs to consider? Show effect on revenues and profitability base on stated assumption. Potential advantages both financial and non-financial.

  Cost accounting system assignment - income statements

Cost Accounting System assignment help and assessment help, Cost Accounting System solutions - What is cost account system and what are the different types.

  Cost of beginning work in process inventory

Cost of beginning work in process inventory completed in September. Costs per equivalent unit of direct materials and conversion.

  Find what is the economic value added

What is its economic value added? The information relates to Black's Mount Ltd. After tax operating income $ 900 000.Total assets $ 6 000 000

  What is the new CashCTvalue

You are the new manager of Accounts Payable. As a proud UM graduate, you have worked hard and reduced, What is the new CashCTvalue?

  What is the selling price per stick

The sales volume of $1572310.65 is necessary to produce an operating income of $223669.42. If fixed costs are $386445.03, what is the selling price per stick?

  Compare at least two financial ratios

Determine your investment strategy. Based on the companies you choose, speculate on how the ratios are likely to change over the next five years.

  What is the cost per hour for the casting operation

What is the cost per good part produced Fpr a production order of 10,000 (salable) pieces? What is the cost per hour for this casting operation?

  The business cuella-ro

The business CUELLA-RO S.A. has the following data related to its equity structure in 2009. Define six strategies for it to change from situation A to objective situation B, desirably for 2010.

  What recommendation would make for selecting projects

Additional debt or equity financing efforts to increase the capital budget. What recommendation would you make for selecting the appropriate projects?

  Evaluate manufacturing overhead

If a product requires 7,000 machine hours, Evaluate manufacturing overhead will be allocated to this product

  Prepare a statement of net assets for the year

Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2011 and prepare a statement of net assets for the year ended June 30, 2011.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd