Norma Company uses activity-based costing. The company produces two products: Laptops and iPods. The annual production...
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Norma Company uses activity-based costing. The company produces two products: Laptops and iPods. The annual production and sales volume of laptops is 8,000 units and of iPods is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs: Activity Cost Pool Unit Level - Direct labor hours Batch Level- Set ups Product level-Engineering Estimated Cost P20,000 P37,000 P91,200 Activity for Laptop 100 hrs 800 set ups 150 400hrs Activity for Ipod 200 set ups 2,850 500hrs Total Activity 1,000 set ups 3,000 Image transcription text Activity Cost Pool Estimated Cost Activity for Laptop Activity for Ipod Total Activity Unit Level - Direct labor hours P20,000 100 hrs 400hrs 500hrs Batch Level-Set ups P37,000 800 set ups 200 set ups 1,000 set ups Product level - Engineering P91,200 150 2,850 3,000 1. If the company uses direct labor hours in computing traditional costing, how much is the UNIT COST for Laptop? (Three decimal places) 2. if the company uses Activity Based Costing, how much is the UNIT COST for IPOD? (two decimal places) 3. If the company uses direct labor hours to compute under traditional costing method, how much will be the over/undercosted amount for laptop product under the reconciliation of Traditional and Activity Based Costing for a BATCH LEVEL COST? 4. If the company uses direct labor hours to compute under traditional costing method, how much will be the over/undercosted amount for IPAD product under the reconciliation of Traditional and Activity Based Costing for a PRODUCT LEVEL COST? Norma Company uses activity-based costing. The company produces two products: Laptops and iPods. The annual production and sales volume of laptops is 8,000 units and of iPods is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs: Activity Cost Pool Unit Level - Direct labor hours Batch Level- Set ups Product level-Engineering Estimated Cost P20,000 P37,000 P91,200 Activity for Laptop 100 hrs 800 set ups 150 400hrs Activity for Ipod 200 set ups 2,850 500hrs Total Activity 1,000 set ups 3,000 Image transcription text Activity Cost Pool Estimated Cost Activity for Laptop Activity for Ipod Total Activity Unit Level - Direct labor hours P20,000 100 hrs 400hrs 500hrs Batch Level-Set ups P37,000 800 set ups 200 set ups 1,000 set ups Product level - Engineering P91,200 150 2,850 3,000 1. If the company uses direct labor hours in computing traditional costing, how much is the UNIT COST for Laptop? (Three decimal places) 2. if the company uses Activity Based Costing, how much is the UNIT COST for IPOD? (two decimal places) 3. If the company uses direct labor hours to compute under traditional costing method, how much will be the over/undercosted amount for laptop product under the reconciliation of Traditional and Activity Based Costing for a BATCH LEVEL COST? 4. If the company uses direct labor hours to compute under traditional costing method, how much will be the over/undercosted amount for IPAD product under the reconciliation of Traditional and Activity Based Costing for a PRODUCT LEVEL COST?
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