unit] Activities | Materials handling Production set upe | Quality inspection} pa —_— lachine deprecation Factory ovethead is applied at the rate of 100% overhead for the month amounts to P160,500. based on direct labor cost. The estimated Overhead estimates for the year are broken down as follows: ‘umber of cost | Estimated ae Cost driver | "driver units | overhead costs Materials handling | Number of alos | 50000 Klos z Production set ups | Number of runs | 300 runs 300,000. ‘Quality inspections | Inspection hours | 4,000 hours 300,000 ‘Machine depreciation | Machine hours | 10,000 hours 400,000 Total Estimated Overhead 2500000 Instructions: Compute for the following: 1. Predetermined annual overhead rates for Activity-based costing ; 2 Overhead costs assigned to Model A and Model Busing acivity-based costing. 3. Cost per unit of Model A and Model B using the activity-based costing 4. Cost per unit of Model A and Model B using the traditional approach, 7 Wacol Company has established the fllowing support cst pools an cost drivers or October 2008: " Cost pool ‘Support Costs cet Purchase orders 50,000 anaes Machine set ups Ay ‘100,000 kwh. a pertains tothe acl cosimpin of ay sours The following information ; ‘wo representative jobs completed during OCt0Pe:ost Shanta Atty Based Costin Sante Number of units produced orders Number of purchase 0 ‘Number of setups ale P Retieeaes atten, ; Ratrenetinteaiet, {Seon actures cash registers. It plans to © aman a te ope neg implement an activity based costing system. Tales Prepared the; fallen estimates regarding cost pools and activity levels forthe next Cost pools Electricity Machine set ups Materials moves (Quality inspection __240,000 Ta zu2o0.000 The plant's present cost accounting system allocates F using a plant-wide cost driver rate based on machine hours, The total machine coming year ae estimated tobe 100000 hours. ‘The company has received a request fora bid to deliver 2.000 un ‘model K1. The following estimates pertain to the production of 2,000 uni Direct materials P i Direct labor (P10 per hour) Machine hours . Set up hours Electricity (kwh) Number of quality inspections ‘Number of material moves Instructions: 1. What is the estimated mar accounting system? 2. What is the estimated system is implemented?+ jobs r the sister Ea High Quality Products, tne, may a manufactures 9 from ee a aueee 0 produice for wen Parts for home appliances received an nee ie = open wth Tight X1M12 at an annual rt of 2000, writ sales ‘i ality uses a trad; crea costs i on direct labor cost, The alti Costing system that allocates factory ngs 400% of direct labor cost. This tate Presently to allocate factory overhead ‘ is based i OD a te ac nt Wet Toad ps ae eee res 500,000 of direct materials init cost aad gvoee als and P100,000 of direct labor. t ‘The uni reqh percentage for Part XLM-122 based on the traditional sect system are Direct labor 100,000 5 Factory overhead (400% xDLC) __ 400,000 wef & ‘The management of High Quality decided to examine the effectiveness their traditional costing system versus and activity based costing system. The acrounting snd engineering analysts have collected the following data: ‘P8,000,000 Quality Production scheduling ae ae ents number of ours Shipping administration Mi of machine aatvity analysis and provide the ts performed ce 20,000 urits of ie acing ad ty sete = following estimates for the Part XLM-A22; 5 toca aura _ — ~~Fase # P2aSTT au 58 59 Nubby Tizes and Smooth Tires. The company produces 5000 Nubby Tires each year and incurs P178,000 Acti Inst forthe company’s3 major product lines. The following informations avalable. wctions: {| Determine the service de an using the direct method, NS" S85 allocated to the two (operating, departments Determine the service department Costs allocated using the step-down method, Allorte te ee Determine the service department costs 4 using the reciprocal method, to the two operating departments laintenance department costs first located to the two operating departments Boots and More, Inc. uses activity-based costing to asist setting prices Activity Cost Pool Estimated Overhead Expected Use of Cost Driver Activity Per Cutting P_ 900,000 24,000 labor hours Stitching 8,000,000 320,000 machine hours Inspections 2,800,000 160,000 labor hours Paco 672,000 {64,000 finished goods units Instruction: Compute the activity-based overhead rates. buggies and has two different products, Plums Company manufactures tires for dune “Tires and 10,000 Smooth “of overhead costs, The following information is available: Number of requisitions