Compute the full cost per unit of product x

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Reference no: EM132722300

XYZ Corporation has identified activity centers to which overhead costs are assigned. The cost pool amounts for these centers and their selected activity drivers for 2020 follow:

Activity                     Centers Costs                     Activity Drivers
Utilities                     P1,200,000                  60,000 machine hours
Setup                      P1,092,000                 1,560 setups
Material Handling       P2,560,000             1,280,000 pounds of material

Problem 1: Product X direct costs amounted to P90,000, direct labor hours were 23,000, machine hours totaled 28,000, 760,000 pounds of material were used, and there were 820 setups. 25,000 units of product X were completed during the period. Compute the full cost per unit of product X using activity based costing:

a. P106.16

b. P109.76

c. P109.20

d. P105.20

Reference no: EM132722300

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