29. Santan Company has two products: A and B. The company uses The estimated activity-based costing to determine product costs. overhead costs and expected activity for each of the company's three overhead activity centers are as follows: Estimated Activity Overhead Expected Activity Product A Center Costs Total Product B P18,000 300 500 Activity 1 200 P16,000 Activity 2 600 100 500 P27,000 900 600 300 Activity 3 under the activity based costing The predetermined overhead rate system for Activity 3 is closest to: a. P30.00. C. P90.00. d. P67.78. b. P30.50.

29. Santan Company has two products: A and B. The company uses The estimated activity-based costing to determine product costs. overhead costs and expected activity for each of the company's three overhead activity centers are as follows: Estimated Activity Overhead Expected Activity Product A Center Costs Total Product B P18,000 300 500 Activity 1 200 P16,000 Activity 2 600 100 500 P27,000 900 600 300 Activity 3 under the activity based costing The predetermined overhead rate system for Activity 3 is closest to: a. P30.00. C. P90.00. d. P67.78. b. P30.50.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
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Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
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8. Monson Company has two products: G and P. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools: Activity Expected Activity Cost Pool Estimated Ovhd. Cost Product G Product P Total Activity 1 $30,000 200 400 600 Activity 2 $24,000 600 900 1,500 Activity 3 $80,000 400 3,600 4,000 The annual production and sales of Product G is 10,640 units. The annual production and sales of Product P is 26,600.The overhead cost per unit of Product P under activity-based costing is closest to: $6.88. $4.00. $30.16. $10.00.