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

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...

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