Solution-How much is the unit cost for laptop

How much is the unit cost for laptop

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Reference no: EM133179490

Question - Norma Company uses activity-based costing. The company produces two products: Laptops and iPods. The annual production and sales volume of laptops is 8,000 units and of iPods is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs:

Activity Cost Pool	Estimated Cost	Activity for Laptop	Activity for Ipod	Total Activity
Unit Level - Direct labor hours	P20,000	100 hrs	400hrs	500hrs
Batch Level- Set ups	P37,000	800 set ups	200 set ups	1,000 set ups
Product level - Engineering	P91,200	150	2,850	3,000

Required -

1. If the company uses direct labor hours in computing traditional costing, how much is the UNIT COST for Laptop?

2. If the company uses Activity Based Costing, how much is the UNIT COST for IPOD?

3. If the company uses direct labor hours to compute under traditional costing method, how much will be the over/undercosted amount for laptop product under the reconciliation of Traditional and Activity Based Costing for a BATCH LEVEL COST?

4. If the company uses direct labor hours to compute under traditional costing method, how much will be the over/undercosted amount for IPAD product under the reconciliation of Traditional and Activity Based Costing for a PRODUCT LEVEL COST?

Reference no: EM133179490

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How much is the unit cost for laptop

Reference no: EM133179490

Reference no: EM133179490

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