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  • Costing and Pricing 04 ACTIVITY 1

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    Joseph Belen
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    DGM Marble Manufacturing has identified three activity centers - utilities, scheduling and setup, and material handling - to assign overhead costs. The company uses machine hours, setups, and pounds of materials to allocate costs of $400,000, $380,000, and $830,000 respectively. These rates are then used to assign overhead costs of $561,100.50, $510,968.90, and $547,534.60 to ceramic tiles, granite tiles, and onyx tiles production. The total overhead costs allocated is $1,619,604.

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    costing and pricing 04 ACTIVITY 1

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    DGM Marble Manufacturing has identified three activity centers - utilities, scheduling and setup, and material handling - to assign overhead costs. The company uses machine hours, setups, and pounds of materials to allocate costs of $400,000, $380,000, and $830,000 respectively. These rates are then used to assign overhead costs of $561,100.50, $510,968.90, and $547,534.60 to ceramic tiles, granite tiles, and onyx tiles production. The total overhead costs allocated is $1,619,604.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    28 views1 page

    Costing and Pricing 04 ACTIVITY 1

    Uploaded by

    Joseph Belen
    DGM Marble Manufacturing has identified three activity centers - utilities, scheduling and setup, and material handling - to assign overhead costs. The company uses machine hours, setups, and pounds of materials to allocate costs of $400,000, $380,000, and $830,000 respectively. These rates are then used to assign overhead costs of $561,100.50, $510,968.90, and $547,534.60 to ceramic tiles, granite tiles, and onyx tiles production. The total overhead costs allocated is $1,619,604.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    The management of DGM Marble Manufacturing has identified activity centers to which overhead costs

    are assigned. The following data is available:

    Activity Solution Pool rates

    Utilities P400,000 /90,000 machine hours P 4.44mhr

    Scheduling and Setup 380,000/1,200 setups P316.67set ups

    Material Handling 830,000/2,000,000 pounds of materials P0.42lbs.

    Step 2 A. Ceramic Tiles B. Granite Tiles C. Onyx Tiles

    Utilities

    40, 000X4.44mhr P177,600

    20, 000X4.44mhr P88,800

    30, 000X4.44mhr P133,200

    P399,600

    Number of setups

    150 XP316.67set ups 47,500.5

    670X P316.67set ups 212,168.9

    380X P316.67set ups 120,334.6

    P380,004

    Material Handling

    800,000X P0.42lbs. 336,000

    500,000X P0.42lbs. 210,000

    700,000X P0.42lbs. 294,000

    840,000

    TOTAL 561,100.5 510,968.9 547,534.6 P1,619,604

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