Victorious Company manufactures two types of Electronic Toy, the Regular and SuperPro. The following data have been obtained: Regular Super Pro Direct material cost per unit Direct labor cost per unit P33 P38 P32 P44 Direct labor hours 3,000 4,000 12,000 Machine hours 2,000 Engineering hours Number of set ups 450 450 20 Number of units 8,000 2,200 Currently, overhead costs are assigned to products on the basis of direct labor hours, but the company decided to adopt the ABC method of cost allocation. The overhead consists of the following items: Overhead Cost Item Cost Driver Amount No. of setups No. of engineering hours Setup costs P250,000 Engineering costs 180,000 Machine costs No. of machine hours 900,000
Victorious Company manufactures two types of Electronic Toy, the Regular and SuperPro. The following data have been obtained: Regular Super Pro Direct material cost per unit Direct labor cost per unit P33 P38 P32 P44 Direct labor hours 3,000 4,000 12,000 Machine hours 2,000 Engineering hours Number of set ups 450 450 20 Number of units 8,000 2,200 Currently, overhead costs are assigned to products on the basis of direct labor hours, but the company decided to adopt the ABC method of cost allocation. The overhead consists of the following items: Overhead Cost Item Cost Driver Amount No. of setups No. of engineering hours Setup costs P250,000 Engineering costs 180,000 Machine costs No. of machine hours 900,000
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...
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