For product A, actual data are as follows: 100 units; 20 set ups; 10,000 kilos of materials and 2,000 machine hours. Under the traditional system (using machine hours), what is the total sales amount of product A if mark up is 20% of selling price.

 

Unit cost of each product for the year is as follows: A Direct Materials Direct Labor Quality Control Set ups 9.00 11.00 150,000.00 100,000.00 B 50.00 85.00 SAN JOSE is considering implementing an ABC system for 2015. The four basic activities identified are as follows: Quality control; setups; material handling and machining activities. The overhead cost associated with each of the four activities is as follows: Material Handling Machining 350,000.00 400,000.00 Base Units Produced Number of Setups Kilos of Materials Machine Hrs SAN JOSE determined the following allocation bases and total cost for each allocation base for implementation of ABC system. Activity Quality Control Set ups Material Handling Machining 360,000.00 1,200.00 18.50 26.00 1,570,000.00 2,000,000.00