Victoria, Kim Patrick C.

BA 504 – Management Accounting

Activity Based Costing System

Required:
1. Flexible – P 110.00+30.00+8.33 = P 148.33
Regular/Rigid – P 60+15+41.67 = P 116.67

2. Est im a t e d
A c t iv it y C o st
A c t iv it y C o st Po o l O v e rh e a d Exp e c t e d A c t iv it y
Po o l
C o st
Fle xib le Rig id To t a l Fle xib le Rig id
Pu rc h a se O rd e r 20,000.00 100 300 400 5,000.00 15,000.00
Re wo rk Re q u e st s 10,000.00 60 140 200 3,000.00 7,000.00
Pro d u c t Te st in g 210,000.00 900 1,200 2,100 90,000.00 120,000.00
Ma c h in e -re la t e d 360,000.00 1,500 2,500 4,000 135,000.00 225,000.00
600,000.00

3. Est im a t e d
A c t iv it y C o st Am o unt o f
A c t iv it y C o st Po o l O v e rh e a d
Po o l O v e rh e a d
C o st
Fle xib le Rig id Fle xib le Rig id
Pu rc h a se O rd e r 20,000.00 5,000.00 15,000.00 5.00 1.50
Re wo rk Re q u e st s 10,000.00 3,000.00 7,000.00 3.00 0.70
Pro d u c t Te st in g 210,000.00 90,000.00 120,000.00 90.00 12.00
Ma c h in e -re la t e d 360,000.00 135,000.00 225,000.00 135.00 22.50
600,000.00 233.00 36.70

Flexible – P 110.00+30.00+233.00 = P 373.00

Regular/Rigid – P 60+15+36.70 = P 111.70

4. The cost of production for the flexible model is too big in comparison with number of its unit
sold.