X Inc has used traditional costing where OH cost is applied based on 15% of Direct Labor cost. DL cost for the period is P 30,000 and direct materials used is 10,000. The company considered using ABC  and determined the following:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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X Inc has used traditional costing where OH cost is applied based on 15% of Direct Labor cost. DL cost for the period is P 30,000 and direct materials used is 10,000. The company considered using ABC  and determined the following:

<Refer to image>

The total product cost assigned to Product G using ABC is?

Activity
1
Cost rate
2 per set up
Cost Driver
No of set ups
No of units
produced
No of orders
For Product G
10 set ups
3 per unit
3 per order
1,000 units
20 orders
2
Transcribed Image Text:Activity 1 Cost rate 2 per set up Cost Driver No of set ups No of units produced No of orders For Product G 10 set ups 3 per unit 3 per order 1,000 units 20 orders 2
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