1. The following cost incurred by Lucky corporation for October 2019 were as follows:

Direct Materials used, P20,000

Indirect materials used, P1,000

Direct labor, P9,000

Indirect labor, P5,000

Other factory cost, P5,000

Selling expenses,P10,000

Administrative expenses, P12,000

Question: How much is the total product cost?

2.Fortune company had the following cost for 2019;

Direct Materials purchases P620,000

Direct labor, P400,000

Factory Overhead cost, P500,000

Change in the direct materials inventory, P20,000 decrease

Change in the work in process inventory, P50,000 increase

Change in the finished goods inventory, P60,000 increase

Requirement a.Question: How much is the total manufacturing cost for 2019?

Requiremen b.Question: How much is the cost of goods manufactured?

Requiremen c.Question: How much is the cost of goods sold?

3. Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $415,000 and actual labor hours were 21,000. Question: To dispose of the balance in the manufacturing overhead account, which of the following is correct?

a.Cost of Goods Sold would be credited for $15,000

b.Cost of Goods Sold would be credited for $5,000

c. Cost of Goods Sold would be debited for $15,000

d.Cost of Goods Sold would be debited for $5,000

4. Hadley, INC. manufactures a product that uses $15 in direct materials and $5 in direct labor per unit. Under the traditional costing system Hadley uses, manufacturing overhead applied to each unit is $12. However, Hadley is considering switching to an ABC system. Under the ABC system, the total activity cost would be $25.

Question: What is the total manufacturing cost per unit for Hadley under ABC system?

5. Jackson, Inc. produces two different products (Product 5 and Product Z) using two different activities: Machining which uses machine hours as an activity driver and Inspection which uses number of the batches as an activity driver. The cost of Machining is $500,000 while the cost of Inspection is $30,000. Product 5 uses 20% of the total machine hours and 75% of the total batches.

Question: What is the total machining cost assigned to product 5?

6. Cottonwood, Inc. produces two different products (Standard and Luxury) using two different activities: Machining which uses machine hours as an activity driver, and Inspection which uses number of batches as an activity driver. The cost of machining is $500,000 while the cost of Inspection is $ 30,000. Standard uses 30% of total machine hours and 70% of the total batches.

Question: What is the total activity cost assigned to Luxury?

7. Activity based costing systems generally use volume- based cost driver? True or False?