ABC Company manufactures three types of televisions: Model A, B and C The company uses the activity-based costing, has identified five activities and its related cost drivers. Each activity, budgeted cost and related cost driver are as follows: (a) Materials handling, P112,50o, number of parts; (b) Materials insertion, P1,237,500; number of parts; (c) Automated machinery, P420,000, machine hours; (d) Finishing, P85,000, direct labor hours; and (e) Packaging, P85,000, order shipped. The following information pertains to each product line for next year: (f) units produced (A, 5,000; B, 2,500; C, 1,000); (g) orders to be shipped (A 500, B 250, C 100); (h) number of parts per unit (A 5, B 7.50; C 12.50); (i) machine hours per unit (A O.50; B 1.50; C 2.50) and (j) labor hours per unit (A 1; B 1, C 1). Under the activity-based costing, what is the total costs of B? * P570,588 O P440,000 O P680,000 O P228,235

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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ABC Company manufactures three types of televisions: Model A, B and C.
The company uses the activity-based costing, has identified five activities
and its related cost drivers. Each activity, budgeted cost and related cost
driver are as follows: (a) Materials handling, P112,500, number of parts; (b)
Materials insertion, P1,237,500; number of parts; (c) Automated
machinery, P420,000, machine hours; (d) Finishing, P85,000, direct labor
hours; and (e) Packaging, P85,000, order shipped. The following
information pertains to each product line for next year: (f) units produced
(A, 5,000; B, 2,500; C, 1,000); (g) orders to be shipped (A 500, B 250, C
100); (h) number of parts per unit (A 5, B 7.50; C 12.50); (i) machine hours
per unit (A 0.50; B 1.50; C 2.50) and (j) labor hours per unit (A 1; B 1, C 1).
Under the activity-based costing, what is the total costs of B? *
P570,588
P440,000
P680,000
O P228,235
Transcribed Image Text:ABC Company manufactures three types of televisions: Model A, B and C. The company uses the activity-based costing, has identified five activities and its related cost drivers. Each activity, budgeted cost and related cost driver are as follows: (a) Materials handling, P112,500, number of parts; (b) Materials insertion, P1,237,500; number of parts; (c) Automated machinery, P420,000, machine hours; (d) Finishing, P85,000, direct labor hours; and (e) Packaging, P85,000, order shipped. The following information pertains to each product line for next year: (f) units produced (A, 5,000; B, 2,500; C, 1,000); (g) orders to be shipped (A 500, B 250, C 100); (h) number of parts per unit (A 5, B 7.50; C 12.50); (i) machine hours per unit (A 0.50; B 1.50; C 2.50) and (j) labor hours per unit (A 1; B 1, C 1). Under the activity-based costing, what is the total costs of B? * P570,588 P440,000 P680,000 O P228,235
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