Hackers Corp. accumulated the following information for its two products, A and B. Product A Total Product B 1,000 20,000 P 2,000 50 Production volume Total direct labor hours 2,000 5,000 P 1,000 100 P20,000 25.000 Setup cost per batch Batch size Total set-up cost incurred Direct labor hour per unit A traditional costing system would allocate set-up costs on the basis of direct labor hours. An ABC system would trace costs by spreading the cost per batch over the units in a batch. P40,000 P60,000 19. What is the set-up cost per unit of Product A under each costing system? Traditional ABC System a.. P4.80 PI0.00 b. 2.40 10.00 с. 40.00 200.00 d. 4.80 20.00
Hackers Corp. accumulated the following information for its two products, A and B. Product A Total Product B 1,000 20,000 P 2,000 50 Production volume Total direct labor hours 2,000 5,000 P 1,000 100 P20,000 25.000 Setup cost per batch Batch size Total set-up cost incurred Direct labor hour per unit A traditional costing system would allocate set-up costs on the basis of direct labor hours. An ABC system would trace costs by spreading the cost per batch over the units in a batch. P40,000 P60,000 19. What is the set-up cost per unit of Product A under each costing system? Traditional ABC System a.. P4.80 PI0.00 b. 2.40 10.00 с. 40.00 200.00 d. 4.80 20.00
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Hackers Corp. accumulated the following information for its two products, A and B.
Product A
Product B
Total
Production volume
Total direct labor hours
2,000
5,000
P 1,000
1,000
20,000
P 2,000
50
25,000
Setup cost per batch
Batch size
100
Total set-up cost incurred
Direct labor hour per unit
A traditional costing system would allocate set-up costs on the basis of direct labor
hours. An ABC system would trace costs by spreading the cost per batch over the
units in a batch.
P20,000
P40,000
P60,000
2
19. What is the set-up cost per unit of Product A under each costing system?
Traditional
ABC System
a..
P4.80
P10.00
b.
2.40
10.00
с.
40.00
200.00
d.
4.80
20.00
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