Chapter 8 966 15. Uratex Company manufactures a variety of classroom chairs. Its job- costing system uses an activity-based approach. There are two di- rect-cost categories (direct materials and direct labor) and three in- direct cost pools. The cost pools represent three activity areas at the plant. Cost Driver used Cost-allocation Manufacturing Activity Area Budgeted Cost for 2016 as Allocation Base Rate Parts P 0.25 Materials Handling Cutting Assembly P 200,000 2,000,000 2,000,000 Parts 2.50 Direct labor hours 25,000. Two styles of chairs were produced in March, the high school chair, and the college chair. Their quantities, direct material costs, and other data for March 2018 are as follows: Direct Direct Units Materials pəɔnpold Costs Number Manufacturing of Parts Labor hours High school chair College chair 000n000 000 0 0i00 00, 000 0 3,500 The direct labor rate is P20 per hour. Assume no beginning or end- ing inventory. What are the unit cost of the high school chair and the college chair? P240.50 and P571.75 respectively P242.50 and P570.25 respectively 6. C. P252.50 and P571.25 respectively P242.50 and P571.25 respectively

Chapter 8 966 15. Uratex Company manufactures a variety of classroom chairs. Its job- costing system uses an activity-based approach. There are two di- rect-cost categories (direct materials and direct labor) and three in- direct cost pools. The cost pools represent three activity areas at the plant. Cost Driver used Cost-allocation Manufacturing Activity Area Budgeted Cost for 2016 as Allocation Base Rate Parts P 0.25 Materials Handling Cutting Assembly P 200,000 2,000,000 2,000,000 Parts 2.50 Direct labor hours 25,000. Two styles of chairs were produced in March, the high school chair, and the college chair. Their quantities, direct material costs, and other data for March 2018 are as follows: Direct Direct Units Materials pəɔnpold Costs Number Manufacturing of Parts Labor hours High school chair College chair 000n000 000 0 0i00 00, 000 0 3,500 The direct labor rate is P20 per hour. Assume no beginning or end- ing inventory. What are the unit cost of the high school chair and the college chair? P240.50 and P571.75 respectively P242.50 and P570.25 respectively 6. C. P252.50 and P571.25 respectively P242.50 and P571.25 respectively

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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- Chapter Four Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machining Required information Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity- based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity rate Saved Product Y Product Z 8,800 3,200 240 40 1 1 8,800 3,200 5. What is the activity rate for the Product Design activity cost pool? per product Save