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Overhead Allocation

The document provides final answers for repair and cafeteria allocations, detailing costs for machinery and assembly. It compares total factory overhead and factory rates per direct labor hour (DLH) using both the direct method and step method. The step method shows slight variations in allocations and rates compared to the direct method.

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Alfon Macanit
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2 views2 pages

Overhead Allocation

The document provides final answers for repair and cafeteria allocations, detailing costs for machinery and assembly. It compares total factory overhead and factory rates per direct labor hour (DLH) using both the direct method and step method. The step method shows slight variations in allocations and rates compared to the direct method.

Uploaded by

Alfon Macanit
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

DIRECT METHOD (FINAL ANSWERS)

Repair Allocation:

- Machinery: P5,600.00

- Assembly: P8,400.00

Cafeteria Allocation:

- Machinery: P6,000.00

- Assembly: P5,000.00

Total Factory Overhead:

- Machinery: P64,100.00

- Assembly: P61,400.00

Factory Rate per DLH:

- Machinery: P27.87 per DLH

- Assembly: P36.12 per DLH

STEP METHOD (FINAL ANSWERS)

Repair Allocation:

- Cafeteria: P3,705.88

- Machinery: P4,117.65

- Assembly: P6,176.47

Cafeteria Allocation (after receiving Repair):

- Machinery: P8,021.39

- Assembly: P6,684.49

Total Factory Overhead:


- Machinery: P64,639.04

- Assembly: P60,860.96

Factory Rate per DLH:

- Machinery: P28.10 per DLH

- Assembly: P35.80 per DLH

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