Using ABC, the total overhead costs charged to the 1,000 boxes of powdered chemical is: The controller of D-Day Chemical Supply has established the following activity centers with overhead costs and related cost drivers: Activity Centers Cost Drivers |Budgeted Overhead Costs P120,000 240,000 60,000 Budgeted Level for Cost |Drivers |Materials Handling |Machine setups Hazardous waste |Weight of raw materials | 60,000 pounds Number of setups Weight of hazardous Materials Number of inspections Machine Hours 120 setups 12,000 pounds |Quality Control Others 85,000 205,000 1,000 inspections 102,500 hours An order for 1,000 boxes of powdered chemicals has the following production requirements: Raw materials (in pounds) Machine setups Hazardous materials (in pounds) Inspections Machine hours 12,500 25 2,500 30 520
Using ABC, the total overhead costs charged to the 1,000 boxes of powdered chemical is: The controller of D-Day Chemical Supply has established the following activity centers with overhead costs and related cost drivers: Activity Centers Cost Drivers |Budgeted Overhead Costs P120,000 240,000 60,000 Budgeted Level for Cost |Drivers |Materials Handling |Machine setups Hazardous waste |Weight of raw materials | 60,000 pounds Number of setups Weight of hazardous Materials Number of inspections Machine Hours 120 setups 12,000 pounds |Quality Control Others 85,000 205,000 1,000 inspections 102,500 hours An order for 1,000 boxes of powdered chemicals has the following production requirements: Raw materials (in pounds) Machine setups Hazardous materials (in pounds) Inspections Machine hours 12,500 25 2,500 30 520
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 11PA: Lampierre makes brass and gold frames. The company computed this information to decide whether to...
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![Using ABC, the total overhead costs charged to the 1,000 boxes of powdered chemical is:
The controller of D-Day Chemical Supply has established the following activity centers with overhead costs and
related cost drivers:
Activity Centers
Budgeted Overhead
Costs
P120,000
240,000
60,000
| Cost Drivers
Budgeted Level for Cost
Drivers
| Materials Handling
|Machine setups
Hazardous waste
Weight of raw materials 60,000 pounds
Number of setups
Weight of hazardous
Materials
Number of inspections
Machine Hours
120 setups
12,000 pounds
|Quality Control
Others
85,000
205,000
1,000 inspections
102,500 hours
An order for 1,000 boxes of powdered chemicals has the following production requirements:
Raw materials (in pounds)
Machine setups
Hazardous materials (in pounds)
Inspections
Machine hours
12,500
25
2,500
30
520](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc54bd6d6-9356-438e-97f4-7ebb47f9e84a%2Ffab060d1-4868-4cb3-b999-2efac4864ec2%2Fsfz6aji_processed.png&w=3840&q=75)
Transcribed Image Text:Using ABC, the total overhead costs charged to the 1,000 boxes of powdered chemical is:
The controller of D-Day Chemical Supply has established the following activity centers with overhead costs and
related cost drivers:
Activity Centers
Budgeted Overhead
Costs
P120,000
240,000
60,000
| Cost Drivers
Budgeted Level for Cost
Drivers
| Materials Handling
|Machine setups
Hazardous waste
Weight of raw materials 60,000 pounds
Number of setups
Weight of hazardous
Materials
Number of inspections
Machine Hours
120 setups
12,000 pounds
|Quality Control
Others
85,000
205,000
1,000 inspections
102,500 hours
An order for 1,000 boxes of powdered chemicals has the following production requirements:
Raw materials (in pounds)
Machine setups
Hazardous materials (in pounds)
Inspections
Machine hours
12,500
25
2,500
30
520
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