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.
Extracted text: The Madalilangto Ink Company prepared the following table for the year 2019: Production Service Departments Departments V Rent 250,000 770,000 15,000 23,000 9,500 14,500 7,000 Repairs 100,000 120,500 30,000 7,500 Fuel 350,000 420,000 7,000 6,000 145,000 97,500 Indirect Labor 157,500 170,000 100,000 1. Indirect 61,000 56,500 127,000 94,500 60,000 Materials Heat and Light 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 V 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 6,000 7,500 3,000 Depreciation Miscellaneous 1,500 500 2,000 500 500