The Matilda produces two products, Alpha and Beta, and uses the conventional method of allocating overhead based on direct labor cost. The management decided to adopt the ABC System of costing. The number of setups and the number of design hours were selected as the activity drivers for the two new cost pools, and direct labor cost will continue as the base for allocating the remaining overhead. Information below is available. For the current period, the eatery had the following activities: 1. Using the ABC System, The total production cost for Alpha is 2. Using the ABC System, The Overhead applied to Job Custom is 3. Using conventional method, the overhead assigned to Job Beta is
The Matilda produces two products, Alpha and Beta, and uses the conventional method of allocating overhead based on direct labor cost. The management decided to adopt the ABC System of costing. The number of setups and the number of design hours were selected as the activity drivers for the two new cost pools, and direct labor cost will continue as the base for allocating the remaining overhead. Information below is available. For the current period, the eatery had the following activities: 1. Using the ABC System, The total production cost for Alpha is 2. Using the ABC System, The Overhead applied to Job Custom is 3. Using conventional method, the overhead assigned to Job Beta is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Matilda produces two products, Alpha and Beta, and uses the conventional method of allocating
For the current period, the eatery had the following activities:
1. Using the ABC System, The total production cost for Alpha is
2. Using the ABC System, The Overhead applied to Job Custom is
3. Using conventional method, the overhead assigned to Job Beta is
Transcribed Image Text:Alpha
Beta
Total
Units produced
73,500
125
73,625
Direct material cost:
Per unit
P12
P100
Direct labor cost
P2,910,000
P90,000
P3,000,000
Setups
30
30
60
Design hours
12,000
3,000
15,000
Overhead:
Setup related
Design related
P300,000
900,000
3,300,000
P4,500,000
Others
Total overhead
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