Question
- Babes Company accumulated the following cost information for its two products, BB and CC. Production volume Total direct labor hours Set up cost
- Babes Company accumulated the following cost information for its two products, BB and CC. Production volume Total direct labor hours Set up cost per batch Batch size Total setup cost incurred Direct labor hour cost per unit Product BB 2,000 5,000 P1,000 100 P20,000 2 Product CC 1,000 20,000 P2,000 50 P40,000 A traditional costing system would allocate setup costs on the basis of direct labor hours. An ABC system would trace costs by spreading the cost per batch over the units in a batch. What is the setup cost per unit of Product BB under each costing system?
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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137024975, 978-0137024971
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