BM2021

Names of student: SANCHEZ, PATRICIA BIANCA S. Section BSA601A Date 03/28/2024

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 B. Granite Tiles C. Onyx Tiles

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 Activity-Based Costing (ABC) system. (2
items x 10 points)

A. Pool rates

Activity Centers Solution Pool Rates

Utilities Php 400,000/80,000 Php 5 / mhr

Scheduling and Setup Php 379,950/800 Php 474.94 / set up
Materials Handling Php 828,000/1,800,000 Php 0.46 /lb
 B. Overhead cost allocated to each product of DGM Marble Manufacturing

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

Utilities:
A. 40,000*5 ₱ 200,000.00
B. 20,000*5 ₱ 100,000.00
C. 20,000*5 ₱ 100,000.00
₱ 400,000.00

Scheduling and Setup:

A. 150*474.94 ₱ 71,240.63
B. 400*474.94 ₱ 189,975.00
C. 250*474.94 ₱ 118,734.38
₱ 379,950.00
Materials Handling:
A. 800,000*.46 ₱ 368,000.00
B. 500,000*.46 ₱ 230,000.00
C. 500,000*.46 ₱ 230,000.00
₱ 828,000.00
TOTAL ₱ 639,240.63 ₱ 519,975.00 ₱ 448,734.38 ₱ 1,607,950.00