EXERCISE 1LP Corporation uses an activity-based costing system with the following three activity cost pools:Total ActivityActivity Cost PoolFabrication80,000 machine-hours400 ordersOrder processingOtherNot applicableThe Other activity cost pool is used to accumulate costs of idle capacity and facility-sustaining costs.The company has provided the following data concerning its costs:Wages and salariesDepreciationP460,000180,000200,000P840,000OccupancyTotalThe distribution of resource consumptions across activity cost pools is given below:Activity Cost PoolsOrderFabricationOtherTotalProcessingWages and salaries5%80%15%100%Depreciation15%40%45%100%Occupancy15%50%35%100%Required:1. Determine the activity rate for the Fabrication activity cost pool.2. Determine the activity rate for the Order Processing activity cost pool.ersity

Name: EXERCISE 1LP Corporation uses an activity-based costing system with t
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Description: EXERCISE 1LP Corporation uses an activity-based costing system with the following three activity cost pools:Total ActivityActivity Cost PoolFabrication80,000 machine-hours400 ordersOrder processingOtherNot applicableThe Other activity cost pool is u

Cost allocated to fabrication activity - Wages and salaries = P460,000 x 5% = P23,000 Depreciation…

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LP Corporation uses an activity-based costing system with the following three activity cost pools: Total Activity Activity Cost Pool Fabrication 80,000 machine-hours 400 orders Order processing Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and facility-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries Depreciation P460,000 180,000 200,000 Occupancy Total P840,000 The distribution of resource consumptions across activity cost pools is given below: Activity Cost Pools Order Fabrication Other Total Processing Wages and salaries 5% 80% 15% 100% Depreciation 15% 40% 45% 100% Occupancy 15% 50% 35% 100% Required: al 1. Determine the activity rate for the Fabrication activity cost pool. 2. Determine the activity rate for the Order Processing activity cost pool. ersity

LP Corporation uses an activity-based costing system with the following three activity cost pools: Total Activity Activity Cost Pool Fabrication 80,000 machine-hours 400 orders Order processing Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and facility-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries Depreciation P460,000 180,000 200,000 Occupancy Total P840,000 The distribution of resource consumptions across activity cost pools is given below: Activity Cost Pools Order Fabrication Other Total Processing Wages and salaries 5% 80% 15% 100% Depreciation 15% 40% 45% 100% Occupancy 15% 50% 35% 100% Required: al 1. Determine the activity rate for the Fabrication activity cost pool. 2. Determine the activity rate for the Order Processing activity cost pool. ersity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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