Reference no: EM133165308
Question - Hale Company manufactures two models of office tables, a standard and a deluxe model. The following activity and cost data has been compiled.
|
Product
|
No. of Set Ups
|
No. of Components
|
No. of DL hours
|
No of units
|
|
Standard
|
11
|
4
|
188
|
750
|
|
Deluxe
|
14
|
6
|
112
|
250
|
|
Overhead cost
|
P20,000
|
P40,000
|
|
|
1. If the company traditional costing, compute the total overhead cost assigned to standard and deluxe if the overhead is based on direct labor hours.
2. Referring to No.1 compute the overhead cost per unit for standard and deluxe.
3. If the company uses ABC, compute the total overhead cost assigned to standard and deluxe.
4. Referring to No.3, compute the overhead cost per unit for standard and deluxe.
5. In reconciling the batch level (no. of set ups - Standard) for Traditional and ABC, determined if it is overcosted or undercosted, and how much?
6. In reconciling the batch level (no. of components - Standard) for Traditional and ABC, determined if it overcosted or undercosted, and how much?
7. In reconciling the batch level (no. of set ups - Deluxe) for Traditional and ABC, determined if it is overcosted or undercosted, and how much?
8. In reconciling the batch level (no. of components - Deluxe) for Traditional and ABC, determined if it overcosted or undercosted, and how much?