GG Merchandise manufactures two products. Product A has 800 units produced, require 200 material moves and one direct labor hour per unit; Product B has 1,600 units produced, require 800 material moves and two direct labor hours per unit. The materials handling costs P2,000,000. Under the Activity Based Costing, the material handling costs allocated to each unit of A and B would be, respectively:
GG Merchandise manufactures two products. Product A has 800 units produced, require 200 material moves and one direct labor hour per unit; Product B has 1,600 units produced, require 800 material moves and two direct labor hours per unit. The materials handling costs P2,000,000. Under the Activity Based Costing, the material handling costs allocated to each unit of A and B would be, respectively:
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:GG Merchandise manufactures two products. Product A has 800 units
produced, require 200 material moves and one direct labor hour per unit;
Product B has 1,600 units produced, require 800 material moves and two
direct labor hours per unit. The materials handling costs P2,000,000.
Under the Activity Based Costing, the material handling costs allocated to
each unit of A and B would be, respectively:
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