Problem 1 PPG Company manufactures two products: Product SS and Product HH. During January, 50 of Product SS and 300 of Product HH were produced, and overhead costs of P81,000 were incurred. An analysis of overhead costs reveals the following activities: Total Cost Activity 1. Materials handling 2. Machine setups 3. Quality inspections Cost Driver Number of requisitions Number of Setups Number of Inspections The cost drive volume for each product was as follows: P30,000 27,000 24,000 Product HH Cost Driver Number of requisitions Product SS 400 600 76

Problem 1 PPG Company manufactures two products: Product SS and Product HH. During January, 50 of Product SS and 300 of Product HH were produced, and overhead costs of P81,000 were incurred. An analysis of overhead costs reveals the following activities: Total Cost Activity 1. Materials handling 2. Machine setups 3. Quality inspections Cost Driver Number of requisitions Number of Setups Number of Inspections The cost drive volume for each product was as follows: P30,000 27,000 24,000 Product HH Cost Driver Number of requisitions Product SS 400 600 76

Name: Number of SetupsNumber of Inspections150300200TUATI 400Instructions:a
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Description: Number of SetupsNumber of Inspections150300200TUATI 400Instructions:a. Determine the overhead rate for each activity.b. Allocate the manufacturing overhead costs to the two products using ABC. PPG Company manufactures two products: Product SS and Pr

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 4TP: If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has...

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Overhead costs are assigned to each product based on __________________. A. the proportion of that products use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per product
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