28. Tiger Lily Company uses activity-based costing to determine unit product costs for external reports. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three overhead activity centers, with estimated overhead costs and expected activity as follows: Activity-Based Costing and Management 307 Estimated Activity Overhead Expected Activity Product A Center Costs Total Product B Activity 1 P18,000 1,000 700 300 Activity 2 P24,000 600 500 100 Activity 3 P60,000 1,200 800 400 The overhead cost per unit of Product A under activity-based costing is closest to: a. P20.40. C. P18.15. b. P10.00. ag d. P17.00.
28. Tiger Lily Company uses activity-based costing to determine unit product costs for external reports. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three overhead activity centers, with estimated overhead costs and expected activity as follows: Activity-Based Costing and Management 307 Estimated Activity Overhead Expected Activity Product A Center Costs Total Product B Activity 1 P18,000 1,000 700 300 Activity 2 P24,000 600 500 100 Activity 3 P60,000 1,200 800 400 The overhead cost per unit of Product A under activity-based costing is closest to: a. P20.40. C. P18.15. b. P10.00. ag d. P17.00.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:28. Tiger Lily Company uses activity-based costing to determine unit
product costs for external reports. The company has two products: A
and B. The annual production and sales of Product A is 4,000 units
and of Product B is 1,000 units. There are three overhead activity
centers, with estimated overhead costs and expected activity as
follows:
Activity-Based Costing and Management 307
Estimated
Activity
Overhead
Expected Activity
Center
Costs
Total
Product A
Product B
Activity 1
P18,000
1,000
700
300
Activity 2
P24,000
600
500
100
Activity 3
P60,000
1,200
800
400
The overhead cost per unit of Product A under activity-based costing is
closest to:
a. P20.40.
C.
P18.15.
b.
P10.00.
d.
P17.00.
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