Valencia Company manufactures two products. Product A has 800 units produced, require 200 material moves and one direct labor hour per unit; Product B has 1,600 units produced, require 800 material moves and two direct labor hours per unit. The materials handling costs P2,000,000. Under the Activity Based Costing, the material handling costs allocated to each unit of A and B would be, respectively: * P 500 and P 500 O P 500 and P1,000 P1,000 and P1,000 P1,000 and P2,000 O None of the above

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
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Valencia Company
manufactures two products.
Product A has 800 units
produced, require 200
material moves and one direct
labor hour per unit: Product B
has 1,600 units produced,
require 800 material moves
and two direct labor hours per
unit. The materials handling
costs P2,000,000. Under the
Activity Based Costing, the
material handling costs
allocated to each unit of A and
B would be, respectively: *
O P 500 and P 500
P 500 and P1,000
P1,000 and P1,000
P1,000 and P2,000
None of the above
Transcribed Image Text:Valencia Company manufactures two products. Product A has 800 units produced, require 200 material moves and one direct labor hour per unit: Product B has 1,600 units produced, require 800 material moves and two direct labor hours per unit. The materials handling costs P2,000,000. Under the Activity Based Costing, the material handling costs allocated to each unit of A and B would be, respectively: * O P 500 and P 500 P 500 and P1,000 P1,000 and P1,000 P1,000 and P2,000 None of the above
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