Using ABC, the total manufacturing costs per unit for product SuperPro is:

Principles of Accounting Volume 2
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Chapter6: Activity-based, Variable, And Absorption Costing
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Using ABC, the total manufacturing costs per unit for product SuperPro is:

Using ABC, the total manufacturing costs per unit for product SuperPro is: *
Mictorious Company manufactures two types of Electronic Toy, the Regular and SuperPro. The following data have
been obtained:
Regular
P33
Super Pro
Direct material cost per unit
Direct labor cost per unit
P38
P32
P44
3,000
4,000
Direct labor hours
12,000
Machine hours
2,000
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
No. of engineering hours
No. of machine hours
P250,000
180,000
Machine costs
900,000
Transcribed Image Text:Using ABC, the total manufacturing costs per unit for product SuperPro is: * Mictorious Company manufactures two types of Electronic Toy, the Regular and SuperPro. The following data have been obtained: Regular P33 Super Pro Direct material cost per unit Direct labor cost per unit P38 P32 P44 3,000 4,000 Direct labor hours 12,000 Machine hours 2,000 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 No. of engineering hours No. of machine hours P250,000 180,000 Machine costs 900,000
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