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BM Motors Corporation has identified activity centers to which overhead costs are assigned. The cost pool amounts for these centers and their selected cost
BM Motors Corporation has identified activity centers to which overhead costs are assigned. The cost pool amounts for these centers and their selected cost drivers for 2014 are as follows: Activity Centers Utilities Scheduling and setups Costs P600,000 P546,000 Cost Drivers 30,000 machine hours 390 setups 800,000 kilos of materials Material handling P1,280,000 The company's products and other operating statistics are as follows: Product A Direct Costs P40,000 Machine hours 15,000 Number of setups 65 Product B P40,000 5,000 190 Kilos of material 250,000 Number of units produced 20,000 150,000 10,000 Direct Labor hours 16,000 9,000 Product C P45,000 10,000 135 400,000 30,000 25,000
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