Nictorious Company manufactures two types of Electronic Toy, the Regular and SuperPro. The following data have been obtained: Regular Super Pro Direct material cost per unit P33 P38 Direct labor cost per unit P32 P44 Direct labor hours 12,000 3,000 Machine hours 2,000 4,000 Engineering hours 450 450 Number of set ups 20 Number of units 8,000 2,200 Currently, overhead costs are assigned to products on the basis of direct labor hours, but the company decided to adopt the ABC method of cost allocation. The overhead consists of the following items: Overhead Cost Item Cost Driver Amount No. of setups No. of engineering hours Setup costs P250,000 Engineering costs 180,000 Machine costs No. of machine hours 900,000
Nictorious Company manufactures two types of Electronic Toy, the Regular and SuperPro. The following data have been obtained: Regular Super Pro Direct material cost per unit P33 P38 Direct labor cost per unit P32 P44 Direct labor hours 12,000 3,000 Machine hours 2,000 4,000 Engineering hours 450 450 Number of set ups 20 Number of units 8,000 2,200 Currently, overhead costs are assigned to products on the basis of direct labor hours, but the company decided to adopt the ABC method of cost allocation. The overhead consists of the following items: Overhead Cost Item Cost Driver Amount No. of setups No. of engineering hours Setup costs P250,000 Engineering costs 180,000 Machine costs No. of machine hours 900,000
Nictorious Company manufactures two types of Electronic Toy, the Regular and SuperPro. The following data have been obtained: Regular Super Pro Direct material cost per unit P33 P38 Direct labor cost per unit P32 P44 Direct labor hours 12,000 3,000 Machine hours 2,000 4,000 Engineering hours 450 450 Number of set ups 20 Number of units 8,000 2,200 Currently, overhead costs are assigned to products on the basis of direct labor hours, but the company decided to adopt the ABC method of cost allocation. The overhead consists of the following items: Overhead Cost Item Cost Driver Amount No. of setups No. of engineering hours Setup costs P250,000 Engineering costs 180,000 Machine costs No. of machine hours 900,000
10. Using ABC, the total manufacturing costs per unit for product SuperPro is:
Transcribed Image Text:Victorious Company manufactures two types of Electronic Toy, the Regular and SuperPro. The following data have
been obtained:
Regular
Super Pro
Direct material cost per unit
P33
P38
Direct labor cost per unit
P32
P44
Direct labor hours
12,000
3,000
Machine hours
2,000
4,000
Engineering hours
450
450
Number of set ups
5
20
Number of units
8,000
2,200
Currently, overhead costs are assigned to products on the basis of direct labor hours, but the company decided
to adopt the ABC method of cost allocation. The overhead consists of the following items:
Overhead Cost Item
Cost Driver
Amount
No. of setups
No. of engineering hours
Setup costs
P250,000
Engineering costs
180,000
Machine costs
No. of machine hours
900,000
Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.
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