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GB Inc. manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below (SEE PICTURE BELOW): The following information pertains to the three product lines for next year (PRESENTED BELOW): Under an activity-based costing system, what is the per-unit cost of Deluxe? * O Activity Material handling Material insertion Automated machinery Finishing Cost P 225,000 2,475,000 840,000 170,000 Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped Packaging Total 170,000 $3,880,000 The following information pertains to the three product lines for next year: Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Economy Standard 10,000 1,000 10 Deluxe 2,000 200 25 5,000 500 15 1 3 2 2

GB Inc. manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below (SEE PICTURE BELOW): The following information pertains to the three product lines for next year (PRESENTED BELOW): Under an activity-based costing system, what is the per-unit cost of Deluxe? * O Activity Material handling Material insertion Automated machinery Finishing Cost P 225,000 2,475,000 840,000 170,000 Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped Packaging Total 170,000 $3,880,000 The following information pertains to the three product lines for next year: Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Economy Standard 10,000 1,000 10 Deluxe 2,000 200 25 5,000 500 15 1 3 2 2

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...
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Cost Accounting
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O P272. P282. O P320. O P440. O O O O
Transcribed Image Text:O P272. P282. O P320. O P440. O O O O
GB Inc. manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below (SEE PICTURE BELOW): The following information pertains to the three product lines for next year (PRESENTED BELOW): Under an activity-based costing system, what is the per-unit cost of Deluxe? * G Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped Activity Material handling Material insertion Cost P 225,000 2,475,000 840,000 170,000 Automated machinery Finishing Packaging Total 170,000 $3,880,000 The following information pertains to the three product lines for next year: Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Economy 10,000 1,000 10 Standard 5,000 500 Deluxe 2,000 200 15 25 1 3 2 2
Transcribed Image Text:GB Inc. manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below (SEE PICTURE BELOW): The following information pertains to the three product lines for next year (PRESENTED BELOW): Under an activity-based costing system, what is the per-unit cost of Deluxe? * G Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped Activity Material handling Material insertion Cost P 225,000 2,475,000 840,000 170,000 Automated machinery Finishing Packaging Total 170,000 $3,880,000 The following information pertains to the three product lines for next year: Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Economy 10,000 1,000 10 Standard 5,000 500 Deluxe 2,000 200 15 25 1 3 2 2
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