Candice Company uses activity-based costing to determine the unit product costs for external reports. The company has two products: Candy A and Candy B. The annual production sales of Candy A is 10,000 units and of Candy B is 4,000 units. There are three overhead activity centers, with estimated overhead costs and expected activity as follows Activity Est. Overhead Expected Activity Total 250 1,000 3,000 Activity 1 Activity 2 Activity 3 25,000 65,000 90,000 Candy A 150 Candy B 100 200 800 1,000 2,000 13. The overhead cost per unit of Candy A under activity-based costing is а. Р6.00 b. Р9.70 С. Р1.50 d. P3.00

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Chapter9: Metric-analysis Of Financial Statements
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Candice Company uses activity-based costing to determine the unit product costs for
external reports. The company has two products: Candy A and Candy B. The annual
production sales of Candy A is 10,000 units and of Candy B is 4,000 units. There are three
overhead activity centers, with estimated overhead costs and expected activity as follows
Activity
Est. Overhead
Expected Activity
Total
250
1,000
3,000
13. The overhead cost per unit of Candy A under activity-based costing is
Саndy B
100
200
Candy A
Activity 1
Activity 2
Activity 3
25,000
65,000
90,000
150
800
1,000
2,000
а. Р6.00
b. Р9.70
C. P1.50
d. Р3.00
Transcribed Image Text:Candice Company uses activity-based costing to determine the unit product costs for external reports. The company has two products: Candy A and Candy B. The annual production sales of Candy A is 10,000 units and of Candy B is 4,000 units. There are three overhead activity centers, with estimated overhead costs and expected activity as follows Activity Est. Overhead Expected Activity Total 250 1,000 3,000 13. The overhead cost per unit of Candy A under activity-based costing is Саndy B 100 200 Candy A Activity 1 Activity 2 Activity 3 25,000 65,000 90,000 150 800 1,000 2,000 а. Р6.00 b. Р9.70 C. P1.50 d. Р3.00
d. P3.00
The following information relates to Pure Corporation for the past accounting period.
Service Departinent
Direct Costs
P80,000
60,000
A
Producing Department
15,000
20,00 0
C
Proportion of scrvice by A to:
B
10%
60%
D
30%
Proportion of service by B to
A
30%
20%
50%
14.. Using the simultaneous method, Dept. A's allocated to Dept. C is
P40,000
b. P58,800
с. Рб0,619
d. P98,000
Transcribed Image Text:d. P3.00 The following information relates to Pure Corporation for the past accounting period. Service Departinent Direct Costs P80,000 60,000 A Producing Department 15,000 20,00 0 C Proportion of scrvice by A to: B 10% 60% D 30% Proportion of service by B to A 30% 20% 50% 14.. Using the simultaneous method, Dept. A's allocated to Dept. C is P40,000 b. P58,800 с. Рб0,619 d. P98,000
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