BM1805
01 Activity 2 Answer Key *Property of STI
Page 1 of 2
ANSWER KEY
LeaveLand Merchandising
1. Leaveland Merchandising has the following account balances at the end of their production cycle for the
month of December:
Compute for the total actual cost using actual costing system. (5 points)
Solution:
๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด ๐ถ๐ถ๐ถ๐ถ๐ถ๐ถ๐ด๐ด =๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด ๐ท๐ท๐ท๐ท๐ท๐ท๐ท๐ท๐ด๐ด๐ด๐ด ๐ถ๐ถ๐ถ๐ถ๐ถ๐ถ๐ด๐ด +๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด ๐๐๐๐๐ท๐ท๐ท๐ทโ๐ท๐ท๐ด๐ด๐๐ ๐ถ๐ถ๐ถ๐ถ๐ถ๐ถ๐ด๐ด
= (๐ท๐ท๐ท๐ท๐ท๐ท๐ท๐ท๐ด๐ด๐ด๐ด ๐ฟ๐ฟ๐ด๐ด๐ฟ๐ฟ๐ถ๐ถ๐ท๐ท +๐ท๐ท๐ท๐ท๐ท๐ท๐ท๐ท๐ด๐ด๐ด๐ด ๐๐๐ด๐ด๐ด๐ด๐ท๐ท๐ท๐ท๐ท๐ท๐ด๐ด๐ด๐ด๐ถ๐ถ) + ๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด ๐๐๐๐๐ท๐ท๐ท๐ทโ๐ท๐ท๐ด๐ด๐๐ ๐ถ๐ถ๐ถ๐ถ๐ถ๐ถ๐ด๐ด
= (๐๐240,000 +162,000) + 35,000
=๐๐402,000 +35,000
=๐ท๐ท๐ท๐ท๐ท๐ท๐ท๐ท,๐๐๐๐๐๐.๐๐๐๐
2. Leaveland Merchandising has the following account balances at the end of their production cycle for the
month of November:
Solve for the following using normal costing system. (2 items x 5 points)
A. Predetermined Overhead Rate
๐๐๐ท๐ท๐ท๐ท๐๐๐ท๐ท๐ด๐ด๐ท๐ท๐ท๐ท๐๐๐ท๐ท๐๐๐ท๐ท๐๐ ๐๐๐๐๐ท๐ท๐ท๐ทโ๐ท๐ท๐ด๐ด๐๐ ๐ท๐ท๐ด๐ด๐ด๐ด๐ท๐ท = ๐ต๐ต๐ด๐ด๐๐๐ต๐ต๐ท๐ท๐ด๐ด๐ท๐ท๐๐ ๐๐๐ด๐ด๐๐๐ด๐ด๐๐๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ด๐ท๐ท๐ท๐ท๐๐๐ต๐ต ๐ถ๐ถ๐๐๐ท๐ท๐ท๐ทโ๐ท๐ท๐ด๐ด๐๐
๐ต๐ต๐ด๐ด๐๐๐ต๐ต๐ท๐ท๐ด๐ด๐ท๐ท๐๐ ๐๐๐ท๐ท๐ถ๐ถ๐๐๐ด๐ด๐ด๐ด๐ด๐ด๐ท๐ท๐ถ๐ถ๐๐ ๐ด๐ด๐ด๐ด๐ด๐ด๐ท๐ท๐๐๐ท๐ท๐ด๐ด๐๐
= ๐๐3,000,000 + (120,000 ร 30)
120,000 ๐ท๐ท๐ฟ๐ฟ๐ท๐ท
= ๐๐3,000,000 + 3,600,000
120,000 ๐ท๐ท๐ฟ๐ฟ๐ท๐ท
Direct Labor
P240,000
Direct Materials
162,000
Manufacturing Overhead
35,000
Direct Labor
P240,000
Direct Materials
162,000
Manufacturing Overhead
35,000
Total Actual Cost
P437,000
Fixed Cost
P3,000,000
Variable Cost per Direct Labor Hours (DLH)
30
Budgeted annual Direct Labor Hours (DLH)
120,000
Actual Direct Labor Hours utilized
180,000
