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b. Batch-level activity center. d. acility-le ity center. 27. Lilium Company uses activity-based costing to determine unit product costs for external reports. The company has two products: A and B. The annual production and sales of Product A is 10,000 units and of Product B is 4,000 units. There are three overhead activity centers, with estimated overhead costs and expected activity as follows: Estimated Activity Overhead Expected Activity Product A Center Costs Total Product B Activity 1 P25,000 250 150 100 Activity 2 P65,000 1,000 800 200 Activity 3 P90,000 3,000 1,000 2,000 The overhead cost per unit of Product A under activity-based costing is closest to: a. P6.00. c. P1.50. b. P9.70. d. P3.00. 7 20

b. Batch-level activity center. d. acility-le ity center. 27. Lilium Company uses activity-based costing to determine unit product costs for external reports. The company has two products: A and B. The annual production and sales of Product A is 10,000 units and of Product B is 4,000 units. There are three overhead activity centers, with estimated overhead costs and expected activity as follows: Estimated Activity Overhead Expected Activity Product A Center Costs Total Product B Activity 1 P25,000 250 150 100 Activity 2 P65,000 1,000 800 200 Activity 3 P90,000 3,000 1,000 2,000 The overhead cost per unit of Product A under activity-based costing is closest to: a. P6.00. c. P1.50. b. P9.70. d. P3.00. 7 20

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 68P: (Appendix 3A) Scattergraph, High-Low Method, Method of Least Squares, Use of Judgment The management...
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ans the 27, 28 and 29. Provide solution
Chapter 9 Production order processing is an example of a: Product-level activity. C. a. Unit-level activity. Batch-level activity. d. Facility-level activity. b. The power costs associated with running machines is an example of a 24. cost that can be traced to a: Product-level activity center. C. a. Unit-level activity center. Batch-level activity center. d. Facility-level activity center. b. 25. Labor setup cost is an example of a cost that can be traced to a: a. Unit-level activity center. Product-level activity center. C. d. Facility-level activity center. b. Batch-level activity center. 26. The plant manager's salary is an example of a cost that would be traced to a: a. C. Unit-level activity center. Batch-level activity center. Product-level activity center. d. Facility-level activity center. b. 27. Lilium Company uses activity-based costing to determine unit product costs for external reports. The company has two products: A and B. The annual production and sales of Product A is 10,000 units and of Product B is 4,000 units. There are three overhead activity centers, with estimated overhead costs and expected activity as follows: Estimated Activity Overhead Center Expected Activity Product A Costs Total Product B Activity 1 P25,000 250 150 100 Activity 2 P65,000 1,000 800 200 Activity 3 P90,000 3,000 1,000 2,000 The overhead cost per unit of Product A under activity-based costing is closest to: a. P6.00. C. P1.50. b. P9.70. d. P3.00. 28. Tiger Lily Company uses activity-based costing to determine unit product costs for external reports. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three overhead activity centers, with estimated overhead costs and expected activity as follows: 306 23.
Transcribed Image Text:Chapter 9 Production order processing is an example of a: Product-level activity. C. a. Unit-level activity. Batch-level activity. d. Facility-level activity. b. The power costs associated with running machines is an example of a 24. cost that can be traced to a: Product-level activity center. C. a. Unit-level activity center. Batch-level activity center. d. Facility-level activity center. b. 25. Labor setup cost is an example of a cost that can be traced to a: a. Unit-level activity center. Product-level activity center. C. d. Facility-level activity center. b. Batch-level activity center. 26. The plant manager's salary is an example of a cost that would be traced to a: a. C. Unit-level activity center. Batch-level activity center. Product-level activity center. d. Facility-level activity center. b. 27. Lilium Company uses activity-based costing to determine unit product costs for external reports. The company has two products: A and B. The annual production and sales of Product A is 10,000 units and of Product B is 4,000 units. There are three overhead activity centers, with estimated overhead costs and expected activity as follows: Estimated Activity Overhead Center Expected Activity Product A Costs Total Product B Activity 1 P25,000 250 150 100 Activity 2 P65,000 1,000 800 200 Activity 3 P90,000 3,000 1,000 2,000 The overhead cost per unit of Product A under activity-based costing is closest to: a. P6.00. C. P1.50. b. P9.70. d. P3.00. 28. Tiger Lily Company uses activity-based costing to determine unit product costs for external reports. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three overhead activity centers, with estimated overhead costs and expected activity as follows: 306 23.
Activity-Based Costing and Management 307 Estimated Activity Overhead Expected Activity Center Costs Total Product A Product B Activity 1 P18,000 1,000 700 300 Activity 2 P24,000 600 500 100 Activity 3 P60,000 1,200 800 400 The overhead cost per unit of Product A under activity-based costing is closest to: a. P20.40. C. P18.15. b. P10.00. d. P17.00. 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 P16,000 500 600 Activity 2 100 900 P27,000 600 300 Activity 3 The predetermined overhead rate under the activity based costing system for Activity 3 is closest to: C. P90.00. P30.00. a. b. P30.50. P67.78. od 008 d.
Transcribed Image Text:Activity-Based Costing and Management 307 Estimated Activity Overhead Expected Activity Center Costs Total Product A Product B Activity 1 P18,000 1,000 700 300 Activity 2 P24,000 600 500 100 Activity 3 P60,000 1,200 800 400 The overhead cost per unit of Product A under activity-based costing is closest to: a. P20.40. C. P18.15. b. P10.00. d. P17.00. 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 P16,000 500 600 Activity 2 100 900 P27,000 600 300 Activity 3 The predetermined overhead rate under the activity based costing system for Activity 3 is closest to: C. P90.00. P30.00. a. b. P30.50. P67.78. od 008 d.
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