Scribd
Upload
20 views3 pages

Assignment 3 - Individual - Activity Based Costing

The document contains 5 assignments related to activity-based costing calculations for companies with 2 products each. The assignments require determining overhead costs, total overhead applied, and unit product costs under an activity-based costing system.

Uploaded by

Iza Acebuque
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
20 views3 pages

Assignment 3 - Individual - Activity Based Costing

The document contains 5 assignments related to activity-based costing calculations for companies with 2 products each. The assignments require determining overhead costs, total overhead applied, and unit product costs under an activity-based costing system.

Uploaded by

Iza Acebuque
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Assignment # 3

ACTIVITY BASED COSTING

Assignment #1. Johnny de la Cruz Company uses activity-based costing. The company has two
products: A and B. The annual production and sales of Product A is 5,000 units and of Product B
is 2,000 units. There are three activity cost pools, with estimated total cost and expected activity
as follows:

Estimated Expected Activity


Activity Cost Pools Overhead Cost Product A Product B Total
Activity 1 P 24,000 200 800 1,000
Activity 2 P 36,900 750 150 900
Activity 3 P 63,000 1,000 800 1,800

Required: Determine the overhead cost per unit of Product A under activity-based costing.

Assignment #2. Baker Express Inc., manufactures and sells two products: Product N0 and
Product U8. Data concerning the expected production of each product and the expected total
direct labor-hours (DLHs) required to produce that output appear below:

Direct Labor-
Expected Hours Per Total Direct
Production Unit Labor-Hours
Product N0 1,000 6.0 6,000
Product U8 200 9.0 1,800
Total direct labor-hours 7,800

The company is considering adopting an activity-based costing system with the following
activity cost pools, activity measures, and expected activity:

Estimated Expected Activity


Activity Cost Overhead
Pools Activity Measures Cost Product N0 Product U8 Total
Labor-related DLHs P 170,664 6,000 1,800 7,800
Machine setups setups 59,040 400 500 900
Order size MHs 252,648 3,400 3,200 6,600
P 482,352

Required: Compute for the total overhead applied to Product U8 under activity-based costing.
Assignment #3. Harley, Inc., manufactures and sells two products: Product Q9 and Product F0.
Data concerning the expected production of each product and the expected total direct labor-
hours (DLHs) required to produce that output appear below:

Expected Direct Labor- Total Direct


Production Hours Per Unit Labor-Hours
Product Q9 800 8.0 6,400
Product F0 800 6.0 4,800
Total direct labor-hours 11,200

The direct labor rate is P21.80 per DLH. The direct materials cost per unit for each product is
given below:

Direct Materials
Cost per Unit
Product Q9 P174.90
Product F0 P146.70

The company is considering adopting an activity-based costing system with the following
activity cost pools, activity measures, and expected activity:

Estimated Expected Activity


Activity Cost Overhead
Pools Activity Measures Cost Product Q9 Product F0 Total
Labor-related DLHs P 379,680 6,400 4,800 11,200
Machine setups setups 43,830 300 200 500
Order size MHs 284,700 3,100 2,900 6,000
P 708,210

Required: Determine the unit product cost of Product F0 under activity-based costing.

Assignment #4. Kraft Korner Inc., manufactures and sells two products: Product T4 and Product
F9. The company has an activity-based costing system with the following activity cost pools,
activity measures, and expected activity:

Estimated Expected Activity


Activity Cost Overhead
Pools Activity Measures Cost Product T4 Product F9 Total
Labor-related DLHs P 326,650 4,500 4,900 9,400
Product testing tests 68,572 600 800 1,400
Order size MHs 79,690 3,200 3,300 6,500
P 474,912

Required: Ascertain the total overhead applied to Product T4 under activity-based costing.
Assignment #5. Jordan Smash, Inc., manufactures and sells two products: Product N0 and
Product A8. Data concerning the expected production of each product and the expected total
direct labor-hours (DLHs) required to produce that output appear below:

Expected Direct Labor- Total Direct


Production Hours Per Unit Labor-Hours
Product N0 400 6.0 2,400
Product A8 100 4.0 400
Total direct labor-hours 2,800

The direct labor rate is P16.50 per DLH. The direct materials cost per unit for each product is
given below:

Direct Materials
Cost per Unit
Product N0 P288.50
Product A8 P232.70

The company is considering adopting an activity-based costing system with the following
activity cost pools, activity measures, and expected activity:

Estimated Expected Activity


Activity Cost Overhead
Pools Activity Measures Cost Product N0 Product A8 Total
Labor-related DLHs P 77,448 2,400 400 2,800
Machine setups setups 28,064 300 500 800
Order size MHs 359,134 4,000 3,900 7,900
P 464,646

Required; What is the unit product cost of Product N0 under activity-based costing?

You might also like