Topic: Cost allocation The ABC garments factory produces two type of jacket, Denim and Polyester. The research and development team is composed of twoProduct Engineer experts in making denim and polyester jacket. The given information for product development shown below.Product Engineer 1 salaryProduct Engineer 2 salary22,00022,000Transportation expense of Product Engineer 15,000Transportation expense of Product Engineer 2Direct material used in sample making for Denim jacket5,00010,000Direct material used in sample making for Polyester jacketMachine electricity consumption (in Php)9,0001,400The demand for denim jacket in color black is 4,000 pieces, while the color gray is 2,000 pieces. The polyester jacket demand is 5,000pieces. The total sales of Denim jacket (black and gray) is Php 65, o00 and Php 55,550 in polyester jacket. The Company owner want todetermine the minimum factory overheads cost among the two type of jacket.

Manufacturing overhead price is that the add of all the indirect prices that area unit incurred…

Answered: The ABC garments fa-

Business

Accounting

The ABC garments fa-

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter15: Lean Accounting And Productivity Measurement

Section: Chapter Questions

Problem 6E: Bienestar Inc., has the following departmental structure for producing a well-known multivitamin: A...

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