A company has two production departments, Cutting and Finishing and two service departments, Quality Control and Maintenance. Selected information on the four departments is given below: Cutting Finishing Quality Control Maintenance Direct cost P400,000 P240,000 P120,000 P180,000 No of inspection 4000 16,000 Machine hours 40,000 20,000 Quality control department costs are allocated on the basis of number of inspections. Maintenance department costs are allocated on the basis of number of machine hours Under the direct method, the amount of quality control costs allocated to the cutting department is O 424000 O 24000 96000 O 296000

A company has two production departments, Cutting and Finishing and two service departments, Quality Control and Maintenance. Selected information on the four departments is given below: Cutting Finishing Quality Control Maintenance Direct cost P400,000 P240,000 P120,000 P180,000 No of inspection 4000 16,000 Machine hours 40,000 20,000 Quality control department costs are allocated on the basis of number of inspections. Maintenance department costs are allocated on the basis of number of machine hours Under the direct method, the amount of quality control costs allocated to the cutting department is O 424000 O 24000 96000 O 296000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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