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In manufacturing Roller blades, Isko Store company's plant used 400 direct labor hours, 500 machine hours and 20 setups. The following overhead costs were taken

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In manufacturing Roller blades, Isko Store company's plant used 400 direct labor hours, 500 machine hours and 20 setups. The following overhead costs were taken from the factory accounts: Machining center: Overhead costs Volume of activities..... P120,000.00 20,000 machine hours Set-up center: Overhead costs. Volume of activities... P40,000.00 100 set ups Direct labor hours: Volume of activities..... 4,000 hours The plant was using a factory wide overhead rate based on direct labor hours. A new ABC system will used machine hours in the Machining Department and number of set-ups in the Setup Department as cost drivers. The overhead costs assigned to roller blades using direct labor hours to allocate overhead costs is ? Select the correct response P120,000.00 P160,000.00 P12,000.00 OP16,000.00

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