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 products direct materials costs are P12.70 per unit and its direct labor is P45.93 per units. The product sells for 126.60 per unit. Using activity-based costing system, compute the product margin of WD40 per unit. 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 products direct materials costs are P12.70 per unit and its direct labor is P45.93 per units. The product sells for 126.60 per unit. Using activity-based costing system, compute the product margin of WD40 per unit. 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

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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