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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
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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