Problem 6. The Accountant of Camera Film Company has established the following activity cost of pools and cost drivers: Activity Cost driver Budgete d OH P200,000 No. of set ups P100,000 Weight of Raw Mat Budgeted level Pool rate Machine set ups 100 P2,000/set up Materials hand 50,000 lbs. P2/lb. Hazardous waste control P50,000 P75,000 Other overhead P200,000 Weight of Hazardous chemical used Number of inspections Machine hours 10,000 lbs. P5/lb. 1,000 20,000 hrs. P10/m hr. Quality control P75/inspection costs An order for 2,000 boxes of film development chemicals has the following production requirements:

Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,200 Training of machine operators 26,300 Processing returned products 17,900 Scrap processing (disposal) 24,800 Rework 8,800 Preventative maintenance 30,500 Product design 45,300 Warranty work 9,500 Finished goods inspection 22,900 From the provided schedule of activity costs, determine the internal failure costs. Oa. $26,880 Ob. $33,600 Oc. $106,300 Od. $61,000

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Please Answer part 4.   Part 1-3 answers Part 1 Computation of Cost Allocation Rate for each activity: Activity Costs Base usage Allocation rate   Material Handling 160,000 20,000 8     Packaging 390,000 2,000 195     Quality Assurance 112,000 1,600 70     Total 662,000           Part 2 Activity Usage of All Activities: Activity Commercial Travel Total Material Handling 8700 4450 13,150 Packaging 900 300 1,200 Quality Assurance 270 370 640   Allocation of Cost basis Usage:       Activity Commercial Travel Material Handling 69,600 35600 (Activity Usage * Cost Allocation Rate) (8,700 * 8) (4450 * 8) Packaging 175,500 58500 Quality Assurance 18,900 25900 Total 264,000 120000 Units Produced 3,000 20000 Cost Per Unit 88 6         Part 3 Particulars Commercial Travel Usage of…

Q. 2 Índigo manufacturing has five activity cost pools and two products ( a budget tape vacuum and a deluxe tape vacuum). Information is presented below:

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18. Using ABC, the total overhead costs charged to the 1,000 boxes of powdered chemical is:

S [The following information applies to the questions displayed below.] Hosmer Industries provides the following information about resources and usage: Resources used Materials Power Setups Purchasing Client assistance Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance Supervision Facility cost Unused Resources Capacity $ 6,600 3,924 2,160 4,680 18,600 8,520 7,080 $ 352,200 47,988 59,076 62, 280 38,520 74,568 128,040 Required: a. Compute the cost driver rate for each resource. Cost Driver Volume 6,400 pounds 272 hours 62 setups 64 purchase orders 40 inquiries 256 labor-hours 3,360 square meters

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From the schedule below provided for quality control activities, determine the appraisal costs: Quality control activities Activity cost Finished goods inspection $12,000 Product design $22,000 Rework $8,900 Processing returned products $21,000 Training of machine operators $25,000 Process audit $32,000 $29.900 $33,000 $66.000 $44.000