Aguila Company has two major segments with the following information:

Skyscraper Ground Zero Total

Annual Revenue P200,000 P600,000 P800,000

Annual Salesperson Salaries P30,000 P45,000 P75,000

Number of Customers 50 75 125

Miles Driven 80,000 40,000 120,000

The business also has overhead costs as follows:

Cost pool Cost in pool Cost driver

Travel P36,000 miles driven

Entertainment P144,000 number of customers

Administrative P150,000 salaries

TOTAL P330,000

Required:

1. Allocate the overhead costs to the segments based on sales revenue. 2. Determine the income of each segment.

3. Allocate the overhead costs to the segments using ABC.

4. Determine the income of each segment under ABC.