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please help me with explaination please i need it asap 2. Energy Company manufactures a line of high-end laundry equipment. The accountant has proposed changing
please help me with explaination please i need it asap
2. Energy Company manufactures a line of high-end laundry equipment. The accountant has proposed changing from a traditional costing system to an activity-based costing system. The president is not convinces of making the changes, so he request that the next large order for equipment be costed under both systems for purposes of comparison and analysis. An order from LaundryWorld, Inc. for 150 washing machine is received. The following cost data relate to the LaundryWorld order. Data relevant to both costing systems: Direct material Direct labor hours Direct labor rate per hour P55,500 820 P18.00 Data relevant to the traditional costing system: Predetermined overhead rate is 300% of direct labor cost Data relevant to the activity-based costing system. Cost Drivers Activity Center Activity-Based Overhead Rate Expected Use of Cost Drivers per Treadmill 330 Engineering design Engineering hours P30 per order 22 Setups Machine setup P200 per setup 732 Machine hours P25 per hour Machining 1,450 P8 per sub assembly h s n Assembly 152 P15 per hour Number of sun- assemblies Packaging. Shipping hours Machine hours 732 P6 per hour Packaging and shipping Building occupancy Question: What is the cost per unit under Traditional Costing System and Activity-Based Costing SystemStep by Step Solution
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