Hackers Corp. accumulated the following information for its two products, A and B. Product A Total Product B 1,000 20,000 P 2,000 50 Production volume Total direct labor hours 2,000 5,000 P 1,000 100 P20,000 25.000 Setup cost per batch Batch size Total set-up cost incurred Direct labor hour per unit A traditional costing system would allocate set-up costs on the basis of direct labor hours. An ABC system would trace costs by spreading the cost per batch over the units in a batch. P40,000 P60,000 19. What is the set-up cost per unit of Product A under each costing system? Traditional ABC System a.. P4.80 PI0.00 b. 2.40 10.00 с. 40.00 200.00 d. 4.80 20.00
Hackers Corp. accumulated the following information for its two products, A and B. Product A Total Product B 1,000 20,000 P 2,000 50 Production volume Total direct labor hours 2,000 5,000 P 1,000 100 P20,000 25.000 Setup cost per batch Batch size Total set-up cost incurred Direct labor hour per unit A traditional costing system would allocate set-up costs on the basis of direct labor hours. An ABC system would trace costs by spreading the cost per batch over the units in a batch. P40,000 P60,000 19. What is the set-up cost per unit of Product A under each costing system? Traditional ABC System a.. P4.80 PI0.00 b. 2.40 10.00 с. 40.00 200.00 d. 4.80 20.00
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3CE: Lansing. Inc., provided the following data for its two producing departments: Machine hours are used...
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