Peter Senen uses activity based costing. The company produces two products: coats and hats. The annual production and sales volume of coats is 8,000 units and of hats is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs: Activity Est. Cost Expected Activity Expected Activity Cost Pool Coats Hats Total Activity 1 P20,000 100 400 500 Activity 2 37,000 800 200 1,000 Activity 3 91,200 800 3,000 3,800 a. Using Activity Based Costing, what is the approximate cost per unit of coats?
Peter Senen uses activity based costing. The company produces two products: coats and hats. The annual production and sales volume of coats is 8,000 units and of hats is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs:
Activity Est. Cost Expected Activity Expected Activity
Cost Pool Coats Hats Total
Activity 1 P20,000 100 400 500
Activity 2 37,000 800 200 1,000
Activity 3 91,200 800 3,000 3,800
a. Using Activity Based Costing, what is the approximate cost per unit of coats?
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