CPA Corp. has provided the following data from its activity-based costing system:Activity Cost PoolInspectionProcessing OrdersAssemblyTotal Activity1,410 inspection hours1,600 orders28,000 machine hoursTotal CostP82,767P60,896P436,240The company makes 230 units of product of WD40 a year, requiring a total of 480machine-hour, 50 orders, and 30 inspection-hours per year. The product's directmaterials costs are P12.70 per unit and its direct labor cost is P45.93 per units. Theproduct sells for P126.60 per unit.Using activity-based costing system, compute the product margin of WD40 per unit.

Here in this question, we are required to compute margin of product WD40 per unit. Activity based…

Answered: CPA Corp. has provided the following…

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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Solomons, Inc. has refined its allocation system by separating manufacturing overhead into two cost pools, one for each department. The estimated cost for the mixing department, $615,000, will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 201,000. The estimated cost for the packaging department, $293,000, will be allocated based on direct labor hours, and the estimated machine hours for the year are 59,200. In October, the company incurred 17,240 direct labor hours in the mixing department and a total of 14,260 machine hours in the packaging department.(Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the predetermined overhead allocation rates. Department Total estimated overhead cost ? Total estimated quantity of the overhead allocation base = Predetermined Overhead Allocation Rate (Per Machine Hour) Mixing Department = Packaging Department =…
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