The following data are available for X Corp:Gross profit is 20% based on cost. Using ABC, compute the selling price of each unit of Product B? Overhead ItemCost DriverNo of set upsNo. of inspectionsNo. of material movesEngr HoursProduct AMachine Set upsInspectionMaterials handlingEngineeringThe foll info was collected for X CORP>Direct materialsDirect laborUnits completedNo. of Set upsNo. of inspectionsNo. of material movesEngr Hours5,000.002,000.00100.001.0020.0030.0010.00Budgeted Cost20,000.00130,000.0080,000.0050,000.0012,000.002,000.0050.002.0010.0010.0050.00Product BBudgeted Activity200.006,500.008,000.001,000.00

Activity-based costing (ABC) is a method of allocation of the overhead costs incurred in the…

Answered: The following data are available for X…

The following data are available for X Corp: Gross profit is 20% based on cost. Using ABC, compute the selling price of each unit of Product B?

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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Question

The following data are available for X Corp:
Gross profit is 20% based on cost. Using ABC, compute the selling price of each unit of Product B?

Overhead Item
Cost Driver
No of set ups
No. of inspections
No. of material moves
Engr Hours
Product A
Machine Set ups
Inspection
Materials handling
Engineering
The foll info was collected for X CORP>
Direct materials
Direct labor
Units completed
No. of Set ups
No. of inspections
No. of material moves
Engr Hours
5,000.00
2,000.00
100.00
1.00
20.00
30.00
10.00
Budgeted Cost
20,000.00
130,000.00
80,000.00
50,000.00
12,000.00
2,000.00
50.00
2.00
10.00
10.00
50.00
Product B
Budgeted Activity
200.00
6,500.00
8,000.00
1,000.00

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