ABC Company uses activity-based costing to determine the unit product costs for external reports. The company has
Question:
ABC Company uses activity-based costing to determine the unit product costs for external reports. The company has two products: Bar G and Bar S. The annual production sales of Bar G is 15,000 units and of Bar S is 9,000 units. There are three overhead activity centers with estimated overhead costs and expected activity as follows: Activity One P24,000 (15,000 and 9,000 to G and S, respectively); Activity Two P90,000 (800 and 200 to G and S, respectively); and Activity Three P75,000 (1,000 and 2,000 to G and S, respectively). The overhead cost per unit of Bar G and Bar S, respectively, under activity-based costing is
(2 Points)
P7.20 and P2.00.
P7.47 and P8.56.
P7.88 and P7.88.
P9.70 and P20.75.
None of the above
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb