5. Summer Company produces two types of products: A and B. Both are produced on the same assembly line but are considered separate divisions. The company wants to know how to allocate manufacturing overhead to the products. The relevant data for the possible allocation bases are given below B P25,000 35,000 P145,000 15,000 30,000 The company incurred manufacturing overhead of P48,000. Using direct labor hours, how much overhead will be allocated to the B? A Materials used P40,000 20,000 P100,000 6,000 25,000 Direct labor hours Direct labor costs Machine hours Output units a. P29,544 b. P30,545 C. P30,455 d. P34,054 6. Using machine hours, how much overhead will be allocated to the A? a. P13,714 b. P28,500 C. P17,455 d. P34,286
5. Summer Company produces two types of products: A and B. Both are produced on the same assembly line but are considered separate divisions. The company wants to know how to allocate manufacturing overhead to the products. The relevant data for the possible allocation bases are given below B P25,000 35,000 P145,000 15,000 30,000 The company incurred manufacturing overhead of P48,000. Using direct labor hours, how much overhead will be allocated to the B? A Materials used P40,000 20,000 P100,000 6,000 25,000 Direct labor hours Direct labor costs Machine hours Output units a. P29,544 b. P30,545 C. P30,455 d. P34,054 6. Using machine hours, how much overhead will be allocated to the A? a. P13,714 b. P28,500 C. P17,455 d. P34,286
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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