CoursHeroTranscribedText: Assume that the company uses the reciprocal method in distributing service department costs and...
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CoursHeroTranscribedText: Assume that the company uses the reciprocal method in distributing service department costs and that the Packaging department applies factory overhead based on requisitions. How much is the over/(under) applied factory overhead if there are 4,250 requisitions and actual factory overhead incurred by the department was P1,173,398? Indicate overapplied as a positive number, ex. 123456, and underapplied as a number in a parenthesis, ex. (123456). Jeang Corporation has two service departments and three producing departments. The following were gathered from their operations: Service Departments Maintenance P500,000 Storeroom 540,000 Producing Departments Machinery 1,200,000 Assembly 1,784,000 Packaging 872,000 A factory survey revealed the following: Departments Maintenance Number of Direct Services Requisitions Labor Hours Maintenance 400 Storeroom 14% Machinery 32% 3,500 20,000 Assembly 26% 6,000 36,000 Packaging 28% 4,100 18,000 The costs of the maintenance department are allocated on the basis of percent of services rendered while the costs of the Storeroom department are allocated based on number of requisitions
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