FAITH JULIA S.

PERALTA
BSA II
Activity Based Costing
Problem 1
1. Facility
2. Facility
3. Batch
4. Facility
5. Product
6. Facility
7. Facility
8. Product
9. Batch
10. Batch
11. Facility
12. Batch
13. Facility
14. Product
15. Facility
16. Unit
17. Batch
18. Facility
Problem 2
Budgeted FOH 6,000,000
Divide by Total Direct Labor Hour 300,000
20 per direct labor hour

Product 0
Direct Labor Hour 120,000
x FOH rate 20
Total FOH 2,400,000
Divide by No. Of units 5,400
Cost per unit 444.44

Product P
Direct Labor Hour 180,000
x FOH rate 20
Total FOH 3,600,000
Divide by No. of units 6,600
Cost per unit 545.45

Plant Supervision
Budgeted FOH 4,200,000
Divide by Direct Labor Hour 300,000
FOH rate 14 per direct labor hour

Machine Set Up
Budgeted FOH 1,800,000
Divide by Total number of set up 2,400
FOH rate 750 per set up
 Product O
Machine set up (1,200 x 750) 900,000
Plant Supervision (120,000 x 14) 1,600,000
Total FOH 2,580,000
Divided by No. of units 5,400
Cost per unit 477.78

Product P
Machine set up (1,200 x 750) 900,000
Plant Supervision (180,000 x 14) 2,520,000
Total FOH 3,420,000
Divided by No. of units 6,600
Cost per unit 518.18 per unit

Problem 3
Plant wide
Budgeted FOH 2,750,000
Divide by Total machine hours 200,000
FOH rate 13.75 per machine hour

Departmental
Mixing
Budgeted FOH 1,550,000
Divide by Total machine hours 100,000
FOH rate 15.50 per machine hour

A. Single Plant Wide Rate

Product X
No. of machine hours 120,500
Multiply by FOH rate 13,75
Total FOH 1,656,875
Divide by No. of units 50,000
Cost per unit 33.14

Product Y
No. of machine hours 79,500
Multiply by FOH rate 13.75
Total FOH 1,093,125
Divide by No. of units 100,000
Cost per unit 10.93 per unit

Departmental Rate
Product X
Mixing (75,500 x 15.50) 1,170,250
Finishing (45,000 x 12) 540,000
Total FOH 1,710, 250
Divided by No. of units 50,000
Cost per unit 34.21 per unit

Product Y
Mixing (24,500 x 15.50) 379,750
Finishing (55,000 x 12) 660,000
Total FOH 1,039,750
Divided by No. of units 100,000
Cost per unit 10.40 per unit

Problem 4
Set ups (20,000,000/1,000,000) 20 per set up
Inspections (500,000/500,000) 1 per inspections
Assembly (8,000,000/800,000) 10 per direct labor hour

Tablet
Set up (50 x 20) 1,000
Inspections (80 x 1) 80
Assembly (200 x 10) 2,000
FOH per unit 3,080

Phone
Set up (60 x 20) 1,200
Inspections (100 x 1) 100
Assembly (120 x 10) 1,200
FOH per unit 2,500

Total FOH for tablet 1,540,000,000

Total FOH for Phone 2,000,000,000
Total FOH for tablet and phone 3,540,000,000

Problem 5
Procurement
Activity cost 8,880,000
Divide by Total No. of purchase order 480,000
Activity rate 18.50 per purchase order

Scheduling
Activity cost 6,000,000
Divide by Total No. of production order 30,000
Activity rate 200 per production order

Material Handling
Activity cost 12,000,000
Divide by Total no. of moves 148,000
Activity rate 80.65 per move

Product Development
Activity cost 17,520,000
Divide by Total no. of engineering changes 1,080
 Activity rate 16,222.22 per engineering
change

Production
Activity cost 36,000,000
Divide by Total no. of machine hours 480,000
Activity rate 75 per machine hour

Pants
Procurement (96,000 x 18.50) 1,776,000
Scheduling (7,200 x 200) 1,440,000
Material Handling (33,600 x 80.65) 2,709,840
Production Development(240 x 16,222.22) 3,896,332.80
Production (48,000 x 75) 3,600,000
Total FOH 13,419,172.80
Divide by no. of units 48,000
FOH per unit 279.57

Shorts
Procurement (96,000 x 18.50) 1,776,000
Scheduling (3,600 x 200) 720,000
Material Handling (19,200 x 80.65) 1,548,480
Production Development(240 x 16,222.22) 3,896,332.80
Production (192,000 x 75) 14,400,000
Total FOH 22,337,812.80
Divide by no. of units 72,000
FOH per unit 310.21

Slacks
Procurement (288,000 x 18.50) 15,328,000
Scheduling (19,200 x 200) 3,840,000
Material Handling (96,000 x 80.65) 7,742,400
Production Development (600 x 16,222.22) 9,733,332
Production (240,000 x 75) 18,000,000
Total FOH 44,643,732
Divide by no. of units 16,000
FOH per unit 2,790.23