The overhead costs assigned to roller blades using

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7. The overhead costs assigned to roller blades using direct labor hours to allocate overhead cost is a. P160,000 b. P16,000 c. P12,000 d. P120,000 8. Using ABC, the overhead costs assigned to roller blades is The controller of D’Day Chemical Supply has established the following activity centers with overhead costs and related cost drivers: Activity Centers Budgeted Overhead Costs Cost Drivers Budgeted Level for Cost Drivers Materials Handling P120,000 Weight of raw materials 60,000 pounds Machine setups 240,000 Number of setups 120 setups Hazardous waste 60,000 Weight of hazardous Materials 12,000 pounds Quality Control 85,000 Number of inspections 1,000 inspections Others 205,000 Machine Hours 102,500 hours An order for 1,000 boxes of powdered chemicals has the following production requirements: Raw materials (in pounds) 10,500 Machine setups 5 Hazardous materials (in pounds) 1,850 Inspections 13 Machine hours 490 9. Assume the company allocates overhead costs on a plant wide basis using machine hours, the plant wide overhead rate is 10. The same assumption as in number 9, the overhead cost per box of powdered chemicals is 11. Using ABC, the total overhead costs charged to the 1,000 boxes of powdered chemical is a. P120,000 b. P205,000 c. P42,335 d. P3,396 12. The same assumption as in number 11, the overhead costs per unit of powdered chemical is
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The Chromosome Manufacturing Company produces two products, X and Y. X is selling at P12.70 per unit while Y is selling at P12.50 per unit. The following data are obtained for the current period. Product X Product Y Number of units 11,000 3,000 Direct material cost per unit P3.50 P3.00 Direct labor hours 10,000 2,500 Direct labor cost per unit P5.50 P4.00 Machine hours 2,100 2,800 Inspection hours 80 100 Purchase orders 10 30 Overhead costs Amount Inspection costs P16,200 Purchasing costs 8,000 Machine costs 49,000 13. Using direct labor hours to allocate overhead costs, the gross margin of product X is 14. Using ABC, the total manufacturing costs for product Y is 15. Using ABC, the total gross margin for the period is a. P185,700 b. P267,200 c. (P15,400) d. (P44,360) Amend Instrument Inc. manufactures two product: missile instruments and pressure gauges. During January, 50 range instruments and 300 pressure gauges were produced, Direct cost of P54,000 and P85,000 are incurred for Instruments and Gauges, respectively and overhead costs of P81,000 were incurred. An analysis of overhead costs reveals the following activities: Activity Cost Driver Total Cost Material handling Number of requisitions P30,000 Machine setups Number of setups P27,000 Quality inspections Number of inspections P24,000 The cost driver volume for each product was as follows: Cost Driver Instruments Gauges Total Number of requisitions 400 600 1,000 Number of setups 150 300 450 Number of inspections 200 400 600
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