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please help me i need the answer asap pls with explaination. TASK A. Problem Solving. Analyze the given problems and use the worksheet provided for
please help me i need the answer asap pls with explaination.
TASK A. Problem Solving. Analyze the given problems and use the worksheet provided for your answers. 1. Power Corporation incurs about P 860,000 in manufacturing overhead costs each month which had been allocated to individual product lines based on their relative shares of direct labor hours (DLH). The company is concerned that using DLH is inappropriate because some costs are driven by other activities. The following information regarding cost pools and drivers has been developed Cost Driver Amount in Pool Amount of Activity Direct labor hours P520,000 100,000 Number of batches 280,000 500 Engineering/design changes 60,000 120 Total overhead costs P860,000 The following data regarding two product lines of the company are presented: Direct labor hours Number of batches Engineering/design changes Product AB 1,600 4 2 Product CD 200 12 24 Product AB is produced in large batches, while Product CD is a specialty line that only a few customers buy What is the overhead to be allocated to each product line using DLH as the only cost driverStep by Step Solution
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