GB Inc. produces three products with the following production and cost information (SEE PICCTURE BELOW): Overhead costs include setups P90,000; shipping costs P140,000; and engineering costs P180,000. What would be the per unit overhead cost for Model C if activity-based costing were used? * Units produced Direct labor hours (total) Number of setups Number of shipments Engineering change orders Model A 2,000 4,000 100 200 Model B 6,000 2,000 150 225 10 Model C 12,000 4,000 250 275 15
GB Inc. produces three products with the following production and cost information (SEE PICCTURE BELOW): Overhead costs include setups P90,000; shipping costs P140,000; and engineering costs P180,000. What would be the per unit overhead cost for Model C if activity-based costing were used? * Units produced Direct labor hours (total) Number of setups Number of shipments Engineering change orders Model A 2,000 4,000 100 200 Model B 6,000 2,000 150 225 10 Model C 12,000 4,000 250 275 15
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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