ISQUID Corp. has provided the following data from its activity-based costing system: Activity Cost Pool                    Total Cost                   Total Activity Inspection                                P82,767                      1,410 inspection hours Processing Orders                  P60,896                       1,600 orders Assembly                                P436,240                     28,000 machine hours The Company makes 230 units of product of WD40 a year, requiring a total of 480 machine-hour, 50 orders, and 30 inspection-hours per year. The product's direct materials costs are P12.70 er unit and its direct labor cost is P45.93 per units. The product sells for P126.60 per unit. Using activity-based costing system, compute the product margin of WD40 per unit.

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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ISQUID Corp. has provided the following data from its activity-based costing system:

Activity Cost Pool                    Total Cost                   Total Activity

Inspection                                P82,767                      1,410 inspection hours

Processing Orders                  P60,896                       1,600 orders

Assembly                                P436,240                     28,000 machine hours

The Company makes 230 units of product of WD40 a year, requiring a total of 480 machine-hour, 50 orders, and 30 inspection-hours per year. The product's direct materials costs are P12.70 er unit and its direct labor cost is P45.93 per units. The product sells for P126.60 per unit. Using activity-based costing system, compute the product margin of WD40 per unit.

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