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    06 Activity 1 Renion-Sena

    Uploaded by

    Goose Chan
    The document summarizes activity-based costing (ABC) calculations for DGM Marble Manufacturing. It provides overhead cost pools and rates for three activity centers: utilities (P5/machine hour), scheduling and setup (P474.94/setup), and materials handling (P0.46/pound). It then allocates overhead costs from each pool to DGM's three product lines (ceramic tiles, granite tiles, onyx tiles), calculating the total overhead allocation of P1,607,950.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    06 Activity 1 Renion-Sena

    Uploaded by

    Goose Chan
    116 views2 pages
    The document summarizes activity-based costing (ABC) calculations for DGM Marble Manufacturing. It provides overhead cost pools and rates for three activity centers: utilities (P5/machine hour), scheduling and setup (P474.94/setup), and materials handling (P0.46/pound). It then allocates overhead costs from each pool to DGM's three product lines (ceramic tiles, granite tiles, onyx tiles), calculating the total overhead allocation of P1,607,950.

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    The document summarizes activity-based costing (ABC) calculations for DGM Marble Manufacturing. It provides overhead cost pools and rates for three activity centers: utilities (P5/machine hour), scheduling and setup (P474.94/setup), and materials handling (P0.46/pound). It then allocates overhead costs from each pool to DGM's three product lines (ceramic tiles, granite tiles, onyx tiles), calculating the total overhead allocation of P1,607,950.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    116 views2 pages

    06 Activity 1 Renion-Sena

    Uploaded by

    Goose Chan
    The document summarizes activity-based costing (ABC) calculations for DGM Marble Manufacturing. It provides overhead cost pools and rates for three activity centers: utilities (P5/machine hour), scheduling and setup (P474.94/setup), and materials handling (P0.46/pound). It then allocates overhead costs from each pool to DGM's three product lines (ceramic tiles, granite tiles, onyx tiles), calculating the total overhead allocation of P1,607,950.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    BM2021

    Names of students: Renion, Gabriela M. & Sena, Ma. Carmella S. Section: BSA601 Date:

    ACTIVITY
    DGM Marble Manufacturing
    The management of DGM Marble Manufacturing has identified activity centers to which overhead
    costs are assigned. The following data are available:

    Activity Centers Costs Activity Drivers


    Utilities P400,000 80,000 machine hours
    Scheduling and Setup 379,950 800 setups
    Material Handling 828,000 1,800,000 pounds of materials

    The company’s products and other operating statistics are the following:

    A. Ceramic Tiles B. Granite Tiles C. Onyx Tiles


    Prime costs P120,000 P130,000 P150,000
    Machine hours 40,000 20,000 20,000
    Number of setups 150 400 250
    Pounds of materials 800,000 500,000 500,000
    Number of units produced 60,000 35,000 60,000
    Direct labor hours 35,000 26,000 50,000

    Provide the following based on the procedures of the Activity-Based Costing (ABC) system. (2 items x
    10 points)

    A. Pool rates

    Activity Centers Solution Pool rates


    Utilities P 400,000/80,000 P 5/mhr.
    Scheduling & setup P 379,950/800 P 474.9375 or P474.94/set
    up
    Materials handling P 828,000/1,800,000 P 0.46/lb.

    B. Overhead cost allocated to each product of DGM Marble Manufacturing

    Product A Product B Product C Onyx Total


    Ceramic Tiles Granite Tiles Tiles
    Utilities
    A. 40,000 x P 5 P 200,000
    B. 20,000 x P 5 P 100,000
    C. 20,000 x P 5 P 100,000
    P 400,000
    Scheduling and setup
    A. 150 x P 474.94 P 71,240.63
    B. 400 x P 474.94 P 189,975
    C. 250 x P 474.94 P 118,734.4
    P 379,950

    06 Activity 1 *Property
    of STI
    BM2021
    Names of students: Renion, Gabriela M. & Sena, Ma. Carmella S. Section: BSA601 Date:

    Material handling
    A. 800,000 x P .46 P 368,000
    B. 500,000 x P .46 P 230,000
    C. 500,000 x P .46 P 230,000
    P 828,000
    TOTAL P 639,240.6 P 519,975 P 448,734.4 P 1,607,950

    Rubric for grading:


    CRITERIA POINTS
    Complete solution with correct answer 10
    Last two (2) major steps of the solution are incorrect 7
    Half of the solution is correct 5
    First two (2) major steps of the solution are correct 3
    First major step of the solution is correct 1

    06 Activity 1 *Property
    of STI

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