Problem 1 PPG Company manufactures two products: Product SS and Product HH. During January, 50 of Product SS and 300 of Product HH were produced, and overhead costs of P81,000 were incurred. An analysis of overhead costs reveals the following activities: Total Cost Activity 1. Materials handling 2. Machine setups 3. Quality inspections Cost Driver Number of requisitions Number of Setups Number of Inspections The cost drive volume for each product was as follows: P30,000 27,000 24,000 Product HH Cost Driver Number of requisitions Product SS 400 600 76

Problem 1 PPG Company manufactures two products: Product SS and Product HH. During January, 50 of Product SS and 300 of Product HH were produced, and overhead costs of P81,000 were incurred. An analysis of overhead costs reveals the following activities: Total Cost Activity 1. Materials handling 2. Machine setups 3. Quality inspections Cost Driver Number of requisitions Number of Setups Number of Inspections The cost drive volume for each product was as follows: P30,000 27,000 24,000 Product HH Cost Driver Number of requisitions Product SS 400 600 76

Name: Number of SetupsNumber of Inspections150300200TUATI 400Instructions:a
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Description: Number of SetupsNumber of Inspections150300200TUATI 400Instructions:a. Determine the overhead rate for each activity.b. Allocate the manufacturing overhead costs to the two products using ABC. PPG Company manufactures two products: Product SS and Pr

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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