ISQUID Corp. has provided the following data from its activity-based costing system: Activity Cost Pool                    Total Cost                   Total Activity Inspection                                P82,767                      1,410 inspection hours Processing Orders                  P60,896                       1,600 orders Assembly                                P436,240                     28,000 machine hours The Company makes 230 units of product of WD40 a year, requiring a total of 480 machine-hour, 50 orders, and 30 inspection-hours per year. The product's direct materials costs are P12.70 er unit and its direct labor cost is P45.93 per units. The product sells for P126.60 per unit. Using activity-based costing system, compute the product margin of WD40 per unit.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ISQUID Corp. has provided the following data from its activity-based costing system:

Activity Cost Pool                    Total Cost                   Total Activity

Inspection                                P82,767                      1,410 inspection hours

Processing Orders                  P60,896                       1,600 orders

Assembly                                P436,240                     28,000 machine hours

The Company makes 230 units of product of WD40 a year, requiring a total of 480 machine-hour, 50 orders, and 30 inspection-hours per year. The product's direct materials costs are P12.70 er unit and its direct labor cost is P45.93 per units. The product sells for P126.60 per unit. Using activity-based costing system, compute the product margin of WD40 per unit.

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