Scribd
Upload
2K views3 pages

Mid Term Quiz 2 On Cost Accounting and Control - Manufacturing Overhead - Departmentalization

This document contains a quiz on cost accounting and control related to manufacturing overhead and departmentalization. The quiz has 5 multiple choice questions regarding the allocation of overhead costs between service and production departments using different allocation methods such as direct, step, and reciprocal. The questions provide departmental overhead costs and allocation percentages to calculate the amounts allocated between departments.

Uploaded by

Gabriel Adrian Obungen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
2K views3 pages

Mid Term Quiz 2 On Cost Accounting and Control - Manufacturing Overhead - Departmentalization

This document contains a quiz on cost accounting and control related to manufacturing overhead and departmentalization. The quiz has 5 multiple choice questions regarding the allocation of overhead costs between service and production departments using different allocation methods such as direct, step, and reciprocal. The questions provide departmental overhead costs and allocation percentages to calculate the amounts allocated between departments.

Uploaded by

Gabriel Adrian Obungen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 3

Name: Gabriel Adrian C.

Obungen Section: AC 103


Date: 03/25/22

Score:

Mid Term Quiz 2 on Cost Accounting and Control – Manufacturing Overhead – Departmentalization

MULTIPLE CHOICE: Choose the best answer by indicating the appropriate letter. Indicate your answers
by highlighting the letter or listing it on a separate answer sheet. ( 20 points )

1. Joecas Corporation distributed service department overhead costs directly to producing


departments without allocation to the other service department. Information for the month of
June is as follows:
Service Departments
Maintenance Utilities
Overhead costs P 20,000 P10,000
Services provided to departments:
Maintenance - 10%
Utilities 20% -
Producing – A 40% 30%
Producing – B 40% 60%

What is the amount of Maintenance Department costs distributed to Producing – A department


for June?
a. P10,000
b. P11,000
c. P8,000
d. P8,800

2. Imperial Company has two service departments ( S1 and S2 ) and two producing departments
( P1 and P2 ). Department data for January 2018 were as follows:
S1 S2
Overhead costs P 27,000 P18,000
Service provided to:
S1 - 20%
S2 10% -
P1 50% 30%
P2 40% 50%

What is the total allocated service department costs to P2 if the company uses the reciprocal
method of allocating its service department costs? ( Round computations to the nearest whole
number).
a. P19,800
b. P21,949
c. P22,500
d. P23,051

3. VV Company allocates the service department overhead costs directly to producing


departments without allocation to the other service departments. Information for the month of
January 2018 is as follows:
Maintenance Utilities
Overhead costs P18,700 P9,000
Service provided to:
Maintenance Department ( MD ) - 10%
Utilities Department ( UD ) 20% -
Producing Department A 40% 30%
Producing Department B 40% 60%

The amount of Utilities Department costs distributed to Producing Department A for January
should be:
a. P3,000
b. P4,500
c. P5,400
d. P6,000

Items 4 and 5 are based on the following information:


JGG Company has two service departments and three producing departments each
producing a separate product. For a number of years, the company has allocated the
overhead costs of the service departments to the producing departments on the basis of
annual sales pesos which lead to serious inequities. The auditor recommended that
maintenance and engineering service hours be used as a better service cost allocation basis.
The following data was available:
Service Departments Producing Departments
Maintenance Engineering Dept. A Dept. B Dept. C
Maintenance hours - 400 800 200 200
Engineering hours 400 - 800 400 400
Overhead costs P 12,000 P 10,000 P 80,000 P90,000 P50,000

4. Using the direct method of cost allocation, how much amount of maintenance costs would
Be allocated to Department C?
a. P3,000
b. P2,000
c. P8,000
d. P 0
5. Under the step method of cost allocation, what amount of Maintenance Department’s cost is
allocated to Engineering Department?
a. P1,500
b. P6,000
c. P3,000
d. P 0

You might also like