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Material handling Material insertion Automated machinery Number of parts Number of parts Finishing 840,000 Machine hours 170,000 Direct labor hours 170.000 Orders shipped Packaging Total P3.880.000 ollowing information pertains to the three product lines for next year: Econo Standar Delux my d e 10,000 5,000 2,000 Units to be produced Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 5 Labor hours per unit 2 2 an activity-based costing system, what is the per-unit cost of Economy? P 225,000 2,475,000 52 2

Material handling Material insertion Automated machinery Number of parts Number of parts Finishing 840,000 Machine hours 170,000 Direct labor hours 170.000 Orders shipped Packaging Total P3.880.000 ollowing information pertains to the three product lines for next year: Econo Standar Delux my d e 10,000 5,000 2,000 Units to be produced Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 5 Labor hours per unit 2 2 an activity-based costing system, what is the per-unit cost of Economy? P 225,000 2,475,000 52 2

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 14E: Cost per equivalent unit The following information concerns production in the Forging Department for...
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HiTech Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe.  The company, which uses activity-based costing, has identified five activities (and related cost drivers).  Each activity, its budgeted cost, and related cost driver is identified below.

Activity Material handling Material insertion Cost Driver Number of parts Number of parts Automated machinery 840,000 Machine hours Finishing Packaging 170,000 Direct labor hours 170,000 Orders shipped P3,880,000 Total The following information pertains to the three product lines for next year: Econo Standar Delux my d e 10,000 5,000 2,000 Units to be produced Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 5 Labor hours per unit 2 2 Under an activity-based costing system, what is the per-unit cost of Economy? Cost P 225,000 2,475,000 52 2
Transcribed Image Text:Activity Material handling Material insertion Cost Driver Number of parts Number of parts Automated machinery 840,000 Machine hours Finishing Packaging 170,000 Direct labor hours 170,000 Orders shipped P3,880,000 Total The following information pertains to the three product lines for next year: Econo Standar Delux my d e 10,000 5,000 2,000 Units to be produced Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 5 Labor hours per unit 2 2 Under an activity-based costing system, what is the per-unit cost of Economy? Cost P 225,000 2,475,000 52 2
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