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What is the estimated manufacturing costs per unit of MAI under the present cost accounting system? 6. The Pangasinan plant of the Pilipinas Company manufactures
What is the estimated manufacturing costs per unit of MAI under the present cost
6. The Pangasinan plant of the Pilipinas Company manufactures cash registers. It plans to implement an activity-based costing system. The controller has prepared the following estimates regarding cost pools and activity levels for the next year. Cost Pool Electricity Activity Costs P100,000 Activity driver levels 40,000 kwh Machine setups 300,000 1,500 setup hours Material moves 80,000 40,000 moves Quality inspections 120,000 30,000 inspections Total P600,000 The plant's present cost accounting system allocates manufacturing overhead to jobs using a plant-wide overhead rate based on machine hours. The total machine hours for the coming year are estimated to be 100,000 hours. The company has received a request for a bid to deliver 2,000 units of its cash register model MAI. The following estimates pertain to the production of 2,000 units of MAI: Direct materials cost P30,000 Direct labor (P10/hour) P15,000 2,000 Machine hours Setup hours 50 Electricity (Kwh) 2.000 500 Number of quality inspections Number of material moves 200 accounting system?
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