Required:
a. Compute for the total Factory overhead rate of G Department, if the company uses the step method in allocating service department costs and distributes the cost of Department U first, Department V second and finally Department W. The producing departments uses the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. *
b. 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 Madalilangto Ink Company prepared the following table for the year 2019:<br>Production<br>Service Departments<br>Departments<br>H<br>U<br>V<br>w<br>770,000<br>120,500<br>420,000<br>170,000<br>15,000<br>23,000<br>9,500<br>7,000<br>7,500<br>Rent<br>250,000<br>100,000<br>350,000<br>157,500<br>61,000<br>14,500<br>30,000<br>7,000<br>Repairs<br>Fuel<br>6,000<br>Indirect Labor<br>145,000<br>100,000<br>97,500<br>Indirect<br>56,500<br>127,000<br>94,500<br>60,000<br>Materials<br>Heat and Light<br>6,000<br>151,200<br>71,300<br>50,500<br>Following is the result of the factory survey regarding service departments:<br>[A] Department U services G, V, and W in the ratio of 2:1:1, respectively;<br>[B] Department services Department H, G, U, and w in the ratio of 4:3:2:1, respectively;<br>[C] Department W services Department H and G in the ratio of 3:1, respectively.<br>202,500<br>94,000<br>60,000<br>9,000<br>7,500<br>2,000<br>3,000<br>Depreciation<br>Miscellaneous<br>1,500<br>500<br>500<br>500<br>](https://s3.us-east-1.amazonaws.com/storage.unifolks.com/qimg-008/008_wknozj0-yvs4ipzw.png)
Extracted text: The Madalilangto Ink Company prepared the following table for the year 2019: Production Service Departments Departments H U V w 770,000 120,500 420,000 170,000 15,000 23,000 9,500 7,000 7,500 Rent 250,000 100,000 350,000 157,500 61,000 14,500 30,000 7,000 Repairs Fuel 6,000 Indirect Labor 145,000 100,000 97,500 Indirect 56,500 127,000 94,500 60,000 Materials Heat and Light 6,000 151,200 71,300 50,500 Following 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 services Department H, G, U, and w in the ratio of 4:3:2:1, respectively; [C] Department W services Department H and G in the ratio of 3:1, respectively. 202,500 94,000 60,000 9,000 7,500 2,000 3,000 Depreciation Miscellaneous 1,500 500 500 500