BSBA Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; P300,000; P3. (b) inspections, 120,000; P600,000; P5. and (c) assembly, 140,000; P2,100,000; P15. The total factory overhead to be charged to each unit of beer is
BSBA Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; P300,000; P3. (b) inspections, 120,000; P600,000; P5. and (c) assembly, 140,000; P2,100,000; P15. The total factory overhead to be charged to each unit of beer is
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...
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BSBA Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; P300,000; P3. (b) inspections, 120,000; P600,000; P5. and (c) assembly, 140,000; P2,100,000; P15. The total factory overhead to be charged to each unit of beer is
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