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    Activity-Based Costing Activity Center Cost Driver Amount of Activity Center Cost

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    asdfghjkl zxcvbnm
    Romblon Company is choosing between traditional costing and activity-based costing. Under traditional costing, the applied overhead for Job 1 which has 3,000 units weighing 10,000 kilos and using 300 machine hours with 7,000 direct labor hours would be 70,000. Tacloban Company uses process costing for its production. Direct materials are added at different stages of production while conversion costs are added uniformly. The cost per unit of conversion cost under average process costing is 9.

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    Activity-Based Costing Activity Center Cost Driver Amount of Activity Center Cost

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    asdfghjkl zxcvbnm
    513 views2 pages
    Romblon Company is choosing between traditional costing and activity-based costing. Under traditional costing, the applied overhead for Job 1 which has 3,000 units weighing 10,000 kilos and using 300 machine hours with 7,000 direct labor hours would be 70,000. Tacloban Company uses process costing for its production. Direct materials are added at different stages of production while conversion costs are added uniformly. The cost per unit of conversion cost under average process costing is 9.

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    Romblon Company is choosing between traditional costing and activity-based costing. Under traditional costing, the applied overhead for Job 1 which has 3,000 units weighing 10,000 kilos and using 300 machine hours with 7,000 direct labor hours would be 70,000. Tacloban Company uses process costing for its production. Direct materials are added at different stages of production while conversion costs are added uniformly. The cost per unit of conversion cost under average process costing is 9.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    513 views2 pages

    Activity-Based Costing Activity Center Cost Driver Amount of Activity Center Cost

    Uploaded by

    asdfghjkl zxcvbnm
    Romblon Company is choosing between traditional costing and activity-based costing. Under traditional costing, the applied overhead for Job 1 which has 3,000 units weighing 10,000 kilos and using 300 machine hours with 7,000 direct labor hours would be 70,000. Tacloban Company uses process costing for its production. Direct materials are added at different stages of production while conversion costs are added uniformly. The cost per unit of conversion cost under average process costing is 9.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Romblon Company is choosing between traditional costing and activity-based costing.

    The
    following data are provided:

    Activity-Based Costing

    Activity center Cost driver Amount of activity Center


    cost
    Material handling Kilos handled 100,000 kg.
    200,000
    Painting Units painted 50,000 units
    300,000
    Assembly Machine hours 10,000 hours
    500,000

    Traditional Costing
    Traditional Labor hours 100,000 hours
    1,000,000

    Job 1 contains 3,000 units. It weighs 10,000 kilos and uses 300 machine hours. The direct labor
    hours on the job total 7,000 hours.

    What is the applied overhead under traditional costing?


    70,000
    60,000
    80,000
    50,000

    Tacloban Company is employing process costing regarding its production cycle.

    Conversion costs are added uniformly during the production process while direct materials are
    added 10% at the start of production process, 50% at the middle of the production process and
    the remainder at the end of production process.

    The production data of the entity during the year are:

    Beginning Work in Process Inventory 10,000 units (30% incomplete as to conversion


    costs)
    Units started during the year 30,000 units
    Ending Work in Process Inventory 5,000 units (75% incomplete as to conversion
    costs)

     There is no spoilage during the period.


     The costs of beginning inventory consist of P103,000 costs of direct materials and P107,500
    conversion costs.
     The total manufacturing costs consist of P252,000 costs of direct materials and P146,250
    conversion costs.

    What is the cost per unit of conversion cost under average process costing?
    10
    9
    8
    7

    What is the cost per unit of direct material under FIFO process costing?
    10
    9
    8
    7

    What is the cost per unit of conversion cost under FIFO process costing?
    5
    9
    8
    7

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