Please do not give solution in image format thanku ●●Machining: 40,000 Machine Hours.Milling: 40,000 Milling Hours.Assembly: 15,000 Direct Labour HoursEach unit requires a budgeted 2 Machine hours, 1 Milling Hour and 4 Direct Labour Hours.ABC's policy is to apply a mark-up of 200% on cost.The budgeted selling price for each unit of product using activity-based costing is:Multiple ChoiceO $177.75 per unit.O $18 per unit.O $20 per unit.O $37 per unit. ABC Inc. produces a single product and manufactured 20,000 units last year. The company budgeted the following overhead costs for the year:Indirect Factory Wages:Factory Utilities:Factory Depreciation:Direct manufacturing costs per unit are $50.The company uses an activity-based costing system which compiles costs into 3 cost pools, machining, milling and assembly.The costs allocated to these activity cost pools break down as follows:Usage:Cost:Indirect Factory Wages:Factory Utilities:Factory Depreciation:$50,000$20,000$30,000Machining Milling Assembly50%30%20%40%40%20%10%90%0%The following cost drivers are used for each of the following activity cost pools:• Machining: Machine Hours• Milling: Milling HoursAssembly: Direct Labour Hours●Practical capacity for each of the cost pools are shown below:• Machining: 18,000 Machine Hours.Milling: 40,000 Milling Hours.

In this question we will find out the selling price for each unit of product using activity based…

• Machining: 40,000 Machine Hours. • Milling: 40,000 Milling Hours. • Assembly: 15,000 Direct Labour Hours ch unit requires a budgeted 2 Machine hours, 1 Milling Hour and 4 Direct Labour Hours. C's policy is to apply a mark-up of 200% on cost. e budgeted selling price for each unit of product using activity-based costing is:

• Machining: 40,000 Machine Hours. • Milling: 40,000 Milling Hours. • Assembly: 15,000 Direct Labour Hours ch unit requires a budgeted 2 Machine hours, 1 Milling Hour and 4 Direct Labour Hours. C's policy is to apply a mark-up of 200% on cost. e budgeted selling price for each unit of product using activity-based costing is:

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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