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
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