Problem B: ABC Company provided the following information for the month of September 2008. Factory overhead is applied at the rate of 100% based on direct labor cost. The estimate overhead for the month amounts to P160,500. Model A Model B Unit produced Direct materials cost per unit Direct labor cost per unit 450 800 P400 P600 P90 P150 Activities Materials handling Production set ups Quality inspection Machine depreciation 3,200 kilos 15 runs 120 hours 506 hours 900 kilos 9 runs 80 hours 280 hours Overhead estimates for the year are broken down as follows: Materials handling Estimated number of Estimated overhead costs deliver units 50,000 kilos 300 runs Cost Driver Cost. Materials Handling Production setups Quality inspections Machine depreciation Number of kilos Number of runs Inspection hours Machine hour Total estimated head P400,000 4,000 hours 10,000 hours P900,000 P300,000 P400,000 11. Cost per unit of Model A using the activity-based costing 12. Cost per unit of Model B using the activity-based costing 13. Cost per unit of Model A using the traditional approach.
Problem B: ABC Company provided the following information for the month of September 2008. Factory overhead is applied at the rate of 100% based on direct labor cost. The estimate overhead for the month amounts to P160,500. Model A Model B Unit produced Direct materials cost per unit Direct labor cost per unit 450 800 P400 P600 P90 P150 Activities Materials handling Production set ups Quality inspection Machine depreciation 3,200 kilos 15 runs 120 hours 506 hours 900 kilos 9 runs 80 hours 280 hours Overhead estimates for the year are broken down as follows: Materials handling Estimated number of Estimated overhead costs deliver units 50,000 kilos 300 runs Cost Driver Cost. Materials Handling Production setups Quality inspections Machine depreciation Number of kilos Number of runs Inspection hours Machine hour Total estimated head P400,000 4,000 hours 10,000 hours P900,000 P300,000 P400,000 11. Cost per unit of Model A using the activity-based costing 12. Cost per unit of Model B using the activity-based costing 13. Cost per unit of Model A using the traditional approach.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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