Victorious Company manufactures two types of Electronic Toy, the Regular and SuperPro. The following data have been obtained: Regular Super Pro P38 Direct material cost per unit Direct labor cost per unit P33 P32 P44 Direct labor hours 12,000 2,000 3,000 4,000 Machine hours Engineering hours Number of set ups 450 450 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 Setup costs Engineering costs No. of setups P250,000 No. of engineering hours No. of machine hours 180,000 Machine costs 900,000

Victorious Company manufactures two types of Electronic Toy, the Regular and SuperPro. The following data have been obtained: Regular Super Pro P38 Direct material cost per unit Direct labor cost per unit P33 P32 P44 Direct labor hours 12,000 2,000 3,000 4,000 Machine hours Engineering hours Number of set ups 450 450 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 Setup costs Engineering costs No. of setups P250,000 No. of engineering hours No. of machine hours 180,000 Machine costs 900,000

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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