Question

Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is the number of employees, and the activity driver for S2 is the number of maintenance hours. The following data pertain to Quillen: Support Departments Producing Departments S1 S2 Cutting Sewing Direct costs RM180,000 RM150,000 RM122,000 RM90,500 Normal activity: Number of employees — 30 63 147 Maintenance hours 1,200 — 16,000 4,000 (b) Allocate the overhead costs to the producing departments by using the reciprocal method.

          Quillen Company manufactures a product in a factory that has two producing
departments, Cutting and Sewing, and two support departments, S1 and S2. The activity
driver for S1 is the number of employees, and the activity driver for S2 is the number of
maintenance hours. The following data pertain to Quillen:
Support Departments Producing Departments
S1 S2 Cutting Sewing
Direct costs RM180,000 RM150,000 RM122,000 RM90,500
Normal activity:
Number of employees — 30 63 147
Maintenance hours 1,200 — 16,000 4,000

(b) Allocate the overhead costs to the producing departments by using the reciprocal
method.

Added by Fazliani E.

Question

Please give Ace some feedback