Solution-What is the factory overhead rate of the cutting

What is the factory overhead rate of the cutting department

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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

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What is the factory overhead rate of the cutting department

Reference no: EM133064910

Reference no: EM133064910

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