Cabat company is considering using an activity based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor hours The activity based costing system would use three activity cost pools Data relating to these activities for the current period are given below Activity Cost Pools Estimated Overhead Costs Product C Product D Total Machine setups $12,190 110 120 230 Purchase orders 75,240 820 1160 1980 General factory 90,480 4560 2400 6960 Total $177,910 Determine the unit product cost of Product C using the ABC approach a $47 73 per unit b $53 07 per unit c $58 11 per unit Determine the unit product cost of Product D using the ABC approach a $47 73 per unit b $53 07 per unit c $58 11 per unit

The Answer is in the image, click to view ...

Question: Cabat company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on

Cabat company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below:

Activity Cost Pools	Estimated Overhead Costs	Product C	Product D	Total
Machine setups	$12,190	110	120	230
Purchase orders	75,240	820	1160	1980
General factory	90,480	4560	2400	6960
Total	$177,910

Determine the unit product cost of Product C using the ABC approach.

a. $47.73 per unit b. $53.07 per unit c. $58.11 per unit

Determine the unit product cost of Product D using the ABC approach.

a. $47.73 per unit b. $53.07 per unit c. $58.11 per unit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Question 2 CD Pte Ltd manufactures two products, Product C and Product D. Overhead is currently applied to the products on the basis of direct labor hours. The company is considering using an...

PROBLEM #2) CCT Company manufactures two products, Product C and Product D. The company estimated it would incur $200,000 in manufacturing overhead costs during the current period. Data concerning...

b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The...

explain the solution. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct...

Cabigas Company manufactures two products, Product C and Product D. The company estimated it would incur $167,140 in manufacturing overhead costs during the current period. Overhead currently is...

The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The...

b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The...

The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The...

Tebo Enterprises manufactures two products, Banjos and Guitars. The company estimated it would incur $127.950 in manufacturing overhead costs during the current period. Overhead currently is applied...

What is Form 941? How often is the form filed?

The inner rim of a 38-kg flywheel is placed on a knife edge, and the period of its small oscillations is found to be 1.26 s. Determine the centroidal moment of inertia of the flywheel. 350 mm

When coupon rates of a bond are less than the market interest rate, bonds sell below face value to compensate the investors.

MAKE A REPORT ON ANY TWO OF THE CORPORATE SOCIAL RESPONSIBILITIES TYPES OF ANY BUSINESS ORGANIZATION. ENVIRONMENTAL CORPORATE RESPONSIBILITY ETHICAL SOCIAL RESPONSIBILITY REPORT SHALL CONTAIN AN...

3.89 State, with evidence, whether each of the following statements is true or false: a. The complement of the union of two events is the intersection of their complements. b. The sum of the...

3.86 You are the meat products manager for Gigantic Foods, a large retail supermarket food distributor who is studying the characteristics of its whole chicken product mix. Chickens are purchased...

3.87 You and a friend are big soccer fans and are debating the possibility that FC Barcelona will win the final of the UEFA Champions League against Manchester United. You are supporting Manchester...