Taylor Company has two products: A and B. The anual production and sales level of Product A is 9,094 units. The aruual production and sales level of Product B is 15,826. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools, Activity Cost Estimated Expected Activity Total Pool Overhead Cost Product A Product B P 29,200 1,000 500 1,500 12 P40,000 200 800 1,000 13 P 180,000 600 5,400 6,000

Taylor Company has two products: A and B. The anual production and sales level of Product A is 9,094 units. The aruual production and sales level of Product B is 15,826. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools, Activity Cost Estimated Expected Activity Total Pool Overhead Cost Product A Product B P 29,200 1,000 500 1,500 12 P40,000 200 800 1,000 13 P 180,000 600 5,400 6,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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