ABC Company has identified activity centers to which overhead costs are assigned.

Estimated Overhead
Activity Centers Costs

Utilities ₱ 3,500,000.00
Scheduling and Setup 840,000
Materials Handling ₱ 1,536,000.00

The company’s products and other operating statistics are as follows:

Product A

Prime costs ₱ 320,000.00

Machine hours 80,000
Number of setups 430
Pounds of materials 1,100,000
Number of units produced 80,000
Direct labor hours 22,000
fied activity centers to which overhead costs are assigned. The following data are available:

Estimated No. of Cost Driver

Units

200,000 machine hours

1,400 setups
2,400,000 pounds of materials

r operating statistics are as follows:

Product B Product C

₱ 360,000.00 ₱ 300,000.00
100,000 60,000
820 510
1,600,000 1,400,000
72,000 67,000
32,000 28,000
 Activity Centers Computation Activity-Based Overhead Rate

Utilities 3,500,000 / 200,000 17.5 per hours

Scheduling and Setup 840,000 / 1,400 600 per setups
Material Handling 1,536,000 / 2,400,000 .64 per pounds
 Product A Product B
Utilities:

A. 80,000 × 17.5 1,400,000

B. 100,000 × 17.5 1,750,000
C. 60,000 × 17.5

Scheduling and Setup:

A. 430 × 600 258,000

B. 820 × 600 492,000
C. 510 × 600

Material Handling:

A. 1,100,000 × .64 704,000

B. 1,600,000 × .64 1,024,000
C. 1,400,000 × .64

TOTAL 2,362,000 3,266,000

Product C TOTAL

1,050,000
4,200,000

306,000
1,056,000

896,000
2,624,000

2,252,000 7,880,000