laseema CỖ. ures laser printers. It has outlined the following overhead cost drivers. (Refer to image) Naseema Co. hac an order for 700 laser printers. Following is a list of production

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Using activity-based costing, applied factory overhead for the 700 laser printers order based on the number of invoices is calculated to be: *

 

a. P7,800

b. P10,500

c. P150

d. P21,600

Naseema Co. manufactures laser
printers. It has outlined the
following overhead cost drivers.
(Refer to image) Naseema Co. had
an order for 700 laser printers.
Following is a list of production
requirements for the order:
Number of inspections - 175;
Number of repetitions - 180;
Number of invoices processed - 5;
Direct labor hours - 650. Using
activity-based costing, applied
factory overhead for the 700 laser
printers order based on the number
of repetitions is calculated to be *
Budgeted Level
Overhead Cost Pool
Cost Driver
Overhead Cost
for Cost Driver
Quality Control
Machine repetitions
Accounts receivable
Inspections
1,080
P64,800
132,000
Repetitions
1,100
Invoices
900
30
Direct labor
Other overhead cost
48,000
4,000
hour
a. P7,800
b. P10,500
c. P150
d. P21,600
Transcribed Image Text:Naseema Co. manufactures laser printers. It has outlined the following overhead cost drivers. (Refer to image) Naseema Co. had an order for 700 laser printers. Following is a list of production requirements for the order: Number of inspections - 175; Number of repetitions - 180; Number of invoices processed - 5; Direct labor hours - 650. Using activity-based costing, applied factory overhead for the 700 laser printers order based on the number of repetitions is calculated to be * Budgeted Level Overhead Cost Pool Cost Driver Overhead Cost for Cost Driver Quality Control Machine repetitions Accounts receivable Inspections 1,080 P64,800 132,000 Repetitions 1,100 Invoices 900 30 Direct labor Other overhead cost 48,000 4,000 hour a. P7,800 b. P10,500 c. P150 d. P21,600
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