BOTE Inc. produces sustainable plastic bottles. The following tables show the detailed production budgets, volumes, costs ABC cost drivers and the traditional volume-based costing (VBC) overhead allocation based on direct labor hours (overhead rate base). Production Data for the Year Plastic bottle Selling price 6.00 Budget units of production 20,000 Material cost per unit P0.50 Direct labor hours per unit 0.05 Direct labor cost per hour P5.00 quality inspections per unit 0.025 Machine hours per unit 0.26 3 Moves required per unit Activity Conversion Costs for 20,000 units (Budgeted Overhead Cost) Indirect Cost Components Costs. (Php) Cost Driver Total USL per hour P5.00 quality inspections per unit 0.025 Machine hours per unit 0.26 3 Moves required per unit Activity Conversion Costs for 20,000 units (Budgeted Overhead Cost) Indirect Cost Components Costs (Php) Cost Driver Total Depreciation on machinery 75,000 Machine hours 5.906 Quality and finishing 24,000 No of quality inspections 6.008 Material handling 30,000 No. of moves 63,397 Total Indirect Cost 129,000 The budgeted direct labor hours is 5,000 hrs for the P129,000 indirect cost (OH cost). What is the unit cost of the product using activity based costing on the overhead cost? (2 decimal places take note of the data for traditional costing method to be used in the next number or question, take a picture of this question or copy the data needed - cerial Yield Variance - (Actual Total Quantity Used Standard Input for Actual Total Output) x Weighted Standard Input Price or Mix Variance - St Actual Individual Hours Used x Individual Standard Ratell - (Actual Total Hours Used x Weighted Standard Rate) or Yield Variance - (Actual Input Hours - Standard Hours for Actual Output) Weighted Standard Rate Question 2 3 pts Based on BOTE Inc data, what is the unit cost of the plastic bottie using traditional costing method the OH rate is based on direct labor hoursi! 2 decimal places) Previous Next Noe saved Submit Que O E 3 2 1 C D Question 3 1 pts Comparing the cost of traditional and ABC costing the company sees the big difference, the company wants to account for all the cost activities Involved in producing the product, should the company change to ABC costing? Yes, they should change No, they should not change Previous Next Noted Submit Qul O i 3 22
