Aguila Company has two major segments with the following information: Skyscraper Ground Zero Total Annual Revenue P200,000 P600,000 P800,000 Annual Salesperson Salaries P30,000 P45,000 P75,000 Number of Customers 50 75 125 Miles Driven 80,000 40,000 120,000 The business also has overhead costs as follows: Cost pool Cost in pool Cost driver Travel P36,000 miles driven Entertainment P144,000 number of customers Administrative P150,000 salaries TOTAL P330,000 Required: 1. Allocate the overhead costs to the segments using ABC. 2. Determine the income of each segment under ABC.
Aguila Company has two major segments with the following information:
Skyscraper Ground Zero Total
Annual Revenue P200,000 P600,000 P800,000
Annual Salesperson Salaries P30,000 P45,000 P75,000
Number of Customers 50 75 125
Miles Driven 80,000 40,000 120,000
The business also has
Cost pool Cost in pool Cost driver
Travel P36,000 miles driven
Entertainment P144,000 number of customers
Administrative P150,000 salaries
TOTAL P330,000
Required:
1. Allocate the overhead costs to the segments using ABC.
2. Determine the income of each segment under ABC.
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