Chapter 6: A Closer Look on Cost AccountingThe company makes 2,350 units of product X a year, requiring a total os3.300 machine hours, 250 orders and 200 inspection hours per year. Theproduct's direct material cost is P201.50 and its direct labor cost inP211.11 per unit. The product sells for P590 per unit. According to theactivity-based costing system, the gross margin for product X is?423,087.50b. 350,435.50c. 416,890d. None of the choicea.56.The following information is available for Mary Corp.Activity PoolSetupsQuality InspectionsAssembly (direct labor hour)What is the activity rate for setups?Activity Base50,000120,000400,000Budgeted Amount300,000600,0002,000,000a. P5.09c. РО.75d. P58.00b. Рб.00The activity rate for quality inspection is:с. Рб.00d. P5.09a. P5.29b. P5.00

The activity rate is calculated as total budgeted cost of particular activity divided by estimated…

56. The following information is available for Mary Corp. Activity Pool Setups Quality Inspections Assembly (direct labor hour) What is the activity rate for setups? P5.09 Activity Base 50,000 120,000 400,000 Budgeted Amount 300,000 600,000 2,000,000 с. РО.75 d. P58.00 a. b. Рб.00 The activity rate for quality inspection is: c. Р6.00 d. P5.09 a. P5.29 b. P5.00

56. The following information is available for Mary Corp. Activity Pool Setups Quality Inspections Assembly (direct labor hour) What is the activity rate for setups? P5.09 Activity Base 50,000 120,000 400,000 Budgeted Amount 300,000 600,000 2,000,000 с. РО.75 d. P58.00 a. b. Рб.00 The activity rate for quality inspection is: c. Р6.00 d. P5.09 a. P5.29 b. P5.00

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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