GB Inc. produces three products. Production and cost information show the following Model X Model Y Model Z Units Produced 1,000 3,000 6,000 Direct labor hours 2,000 1,000 2,000 Number of inspections 20 30 50 Inspection costs totaled P100,000. Using ABC, inspections costs allocated to each unit of Model X would be:
GB Inc. produces three products. Production and cost information show the following Model X Model Y Model Z Units Produced 1,000 3,000 6,000 Direct labor hours 2,000 1,000 2,000 Number of inspections 20 30 50 Inspection costs totaled P100,000. Using ABC, inspections costs allocated to each unit of Model X would be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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GB Inc. produces three products. Production and cost information show the following
Model X | Model Y | Model Z | |
Units Produced | 1,000 | 3,000 | 6,000 |
Direct labor hours | 2,000 | 1,000 | 2,000 |
Number of inspections | 20 | 30 | 50 |
Inspection costs totaled P100,000. Using ABC, inspections costs allocated to each unit of Model X would be:
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