P13-5 Tukwila Company uses activity-based costing system and has the following activity cost pools: Activity cost pool Producing units Processing orders Customer support Annual activity 3,000 machine...

Extracted text: P13-5 Tukwila Company uses activity-based costing system and has the following activity cost pools: Activity cost pool Producing units Processing orders Customer support Annual activity 3,000 machine hours 2,000 orders 500 customers Other Not applicable The "other" activity cost pool is primarily comprised of idle capacity cost and other firm- sustaining charges. The cost of direct materials and direct labor are traced to job orders. The following overhead costs are allocated to jobs/orders using the activity-based costing system: Indirect factory wages Other factory overhead Selling and admin expenses P 80,000 P150,000 P200,000 Based on Tukwila's internal reporting system, employees have distributed their time and resources across the activity cost pools as follows: Customer Producing Processing units Other support 20% units Total 30% 10% 100% Indirect factory wages Other factory overhead Selling and admin 40% 20% 30% 50% 100% 30% 100% 20% 50% expenses


Extracted text: The Company produces multiple products. Data concerning Product LEX are as follows: P288,000 Sales (P240 @ 1,200 units) Direct materials per unit Direct labor per unit Machine hours per unit Orders processed P50 P20 1.5 100 Required: Determine the amount overhead costs (manufacturing and nonmanufacturing) allocated to each activity cost pools: (1) producing units, (2) processing orders, (3) customer support, and (4) other. Calculate the activity rates for: (1) producing units, (2) processing orders, and (3) customer support. а. b. Calculate the amount of overhead costs that would be allocated to Product C. LEX. d. Calculate the gross margin of Product LEX.