The Sanka Company manufactures a variety of expensive furniture. Its job costing system was designed using an activity based approach. There are two direct cost categories (direct materials and direct labor) and three indirect cost pools. These three cost pools represent three activity areas at the plant. Activity Area Materials handling P200,000 Cutting Assembly Budgeted OH Cost driver Pool rate Parts P2.5 P25.00 P2,160,000 P2,000,000 Parts DLH P250.00 Two styles of cabinets were produced in May, De Luxe and Standard. Their quantities, direct material costs and other data for May 2010 are as follows: Production 5,000 100 # of parts 100,000 3,500 DM cost DL Hours Standard De Luxe P3,500,000 P400,000 7,500 1,500 The direct labor rate is P50 per hour. Assume no beginning inventory and ending inventory is 20% of total production. coumu Required: Determine the total manufacturing cost for each product using ABC.

The Sanka Company manufactures a variety of expensive furniture. Its job costing system was designed using an activity based approach. There are two direct cost categories (direct materials and direct labor) and three indirect cost pools. These three cost pools represent three activity areas at the plant. Activity Area Materials handling P200,000 Cutting Assembly Budgeted OH Cost driver Pool rate Parts P2.5 P25.00 P2,160,000 P2,000,000 Parts DLH P250.00 Two styles of cabinets were produced in May, De Luxe and Standard. Their quantities, direct material costs and other data for May 2010 are as follows: Production 5,000 100 # of parts 100,000 3,500 DM cost DL Hours Standard De Luxe P3,500,000 P400,000 7,500 1,500 The direct labor rate is P50 per hour. Assume no beginning inventory and ending inventory is 20% of total production. coumu Required: Determine the total manufacturing cost for each product using ABC.

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Description: Required: Determine the total manufacturing cost for each product using ABC.The Sanka Company manufactures a variety of expensive furniture. Its jobcosting system was designed using an activity based approach. There are twodirect cost categories (di

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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II. The Sanka Company manufactures a variety of expensive furniture. Its job costing system was designed using an activity based approach. There are two direct cost categories (direct materials and direct labor) and three indirect cost pools. These three cost pools represent three activity areas at the plant. Activity Area Materials Handling Cutting Assembly Cost Driver Budgeted OH P200,000 P2,160,000 P2,000,000 Pool Rate Parts P2.50 Parts P25.00 DLH P250.00 Two styles of cabinets were produced in May, De Luxe and Standard. Their quantities, direct material costs and other data for May 2021 are as follows: # of parts 100,000 3,500 Production DM Cost DL Hours Standard 5,000 7,500 P3,500,000 P400,000 De Luxe 100 1,500 The direct labor rate is P50 per hour. Assume no beginning inventory and ending inventory is 20% of total production. 1. Determine the total manufacturing cost for Standard using ABC Costing. 2. Determine the total manufacturing cost for Deluxe using Traditional Costing,…
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A company manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
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