BM2209

Name Ashley Esquivel Section BSBA 302 Date 10/01/22

ACTIVITY

1. Leaveland Merchandising has the following account balances at the end of their production cycle for
December:
Direct Labor P240,000
Direct Materials 162,000
Manufacturing Overhead 35,000

Compute the total actual cost using the actual costing system. (1 item x 5 points)

Actual Cost = (Direct Labor + Direct Materials) + Actual Overhead Cost

= (240,000 + 162,000) + 35,000 = 402,000 + 35,000 = P 437,000.00

2. Leaveland Merchandising has the following account balances at the end of their production cycle for
November:

Fixed Cost P3,000,000

Variable Cost per Direct Labor Hours (DLH) 30
Budgeted annual Direct Labor Hours (DLH) 120,000
Actual Direct Labor Hours utilized 180,000

Solve for the following using normal costing system: (2 items x 5 points)

A. Predetermined Overhead Rate

Budgeted manufacturing overhead

Predetermined Overhead Rate =
Budgeted production activity

= 3,000,000 + (120,000 x 30) = 3,000,000 + 3,600,000 = 6,600,000

= 55 per DLH
120,000 DLH 120,000 DLH 120,000 DLH
 B. Normal Cost

Normal Cost = Predetermined overhead rate x Actual Direct Labor Hours Utilized

55 x 180,000 = 9,900,000

Rubric for grading:

CRITERIA POINTS
Complete solution with the correct answer 5
Last two (2) major steps of the solution are incorrect 4
Half of the solution is correct 3
First two (2) major steps of the solution are correct 2
First major step of the solution is correct 1

01 Activity 2 *Property of
STI
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