Reference no: EM132738990

A company has identified the following overhead costs and cost drivers for the coming year.
Overhead Item          Cost Driver            Rate
(in pesos)

Machine setup No. of setups                  100
Inspection No. of inspections                  20
Material Handling No. of material moves          10
Engineering Engineering hours                  50

The following information was collected on three jobs that were completed during the year:

                                              Job 101                 Job 102                Job 103
Direct materials                 5,000                   12,000               8,000
Direct labor                       2,000                   2,000                 4,000
Units completed                  100                      50                    200
Number of setups                    1                      2                     4
Number of inspections             20                     10                    30
Number of material moves          30                    10                   50
Engineering hours                      10                 50                     10
Budgeted direct labor cost is P100,000 and budgeted direct material cost is P280,000.

Problem 1: If the company uses activity-based costing, how much overhead cost should be allocated to Job 101?

Problem 2: If the company uses activity-based costing, compute the cost of each unit of Job 102

Problem 3: The company prices its product at 140% of cost. If the company uses activity-based costing, the price of each unit of Job 103 would be