Joint,_Standard,_ABC

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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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