Compute for the total Factory overhead cost of Department H 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 Madalilangko Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G U V W Rent 250,000 770,000 15,000 14,500 7,000 Repairs 100,000 120,500 23,000 30,000 7,500 Fuel 350,000 420,000 9,500 7,000 6,000 Indirect Labor 157,500 170,000 145,000 100,000 97,500 Indirect Materials 61,000 56,500 127,000 94,500 60,000 Heat and Light 202,500 151,200 9,000 6,000 7,500 Depreciation 94,000 71,300 3,000 1,500 2,000 Miscellaneous 60,000 50,500 500 500 500 Followung 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 ration of 4:3:2:1, respectively; [C] Department W services Department H and G in the ratio of 3:1, respectively

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Chapter6: Activity-based, Variable, And Absorption Costing
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Compute for the total Factory overhead cost of Department H 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 Madalilangko Ink Company prepared the following table for the year 2019:

                                                 Production                                          Service Departments

                                               Departments    

                                           H                       G                         U                       V                          W

Rent                             250,000           770,000             15,000               14,500                7,000

Repairs                        100,000           120,500             23,000               30,000                7,500

Fuel                              350,000           420,000               9,500                7,000                 6,000                  

Indirect Labor            157,500           170,000            145,000            100,000               97,500

Indirect Materials       61,000              56,500            127,000             94,500                60,000

Heat and Light           202,500            151,200             9,000                  6,000                  7,500

Depreciation                94,000              71,300             3,000                  1,500                  2,000

Miscellaneous             60,000              50,500                 500                    500                     500

Followung 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 ration of 4:3:2:1, respectively;

[C] Department W services Department H and G in the ratio of 3:1, respectively

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