Problem 2Milky Corporation has provided the following data from its activity-based costing accounting system:Activity Cost PoolsDesigning productsSetting up batchesAssembling productsTotal CostP1,372,448P33,300P126,160Total Activity7,798 product design hours740 batch set-ups6,640 assembly hoursThe activity rate for the "designing products" activity cost pool isanswer must be in nearest pesoAThe activity rate for the "setting up batches" activity cost pool isanswer should be in nearest pesoAThe activity rate for the "assembling products" activity cost pool isanswer must be in nearest pesoA

Activity cost pool Activity cost(A)(in peso) Total activity(B) Activity rate(A/B)(peso) Designing…

Milky Corporation has provided the following data from its activity-based costing accounting system: Activity Cost Pools Designing products Setting up batches Assembling products Total Activity 7,798 product design hours 740 batch set-ups 6,640 assembly hours Total Cost P1,372,448 P33,300 P126,160

Milky Corporation has provided the following data from its activity-based costing accounting system: Activity Cost Pools Designing products Setting up batches Assembling products Total Activity 7,798 product design hours 740 batch set-ups 6,640 assembly hours Total Cost P1,372,448 P33,300 P126,160

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 9MC: Which is not a step In activity-based costing? A. identify the activities performed by the...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Problem 2
Milky Corporation has provided the following data from its activity-based costing accounting system:
Activity Cost Pools
Designing products
Setting up batches
Assembling products
Total Cost
P1,372,448
P33,300
P126,160
Total Activity
7,798 product design hours
740 batch set-ups
6,640 assembly hours
The activity rate for the "designing products" activity cost pool is
answer must be in nearest peso
A
The activity rate for the "setting up batches" activity cost pool is
answer should be in nearest peso
A
The activity rate for the "assembling products" activity cost pool is
answer must be in nearest peso
A

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