Altima Company uses an overhead costing system based on direct labor hours for its two products X and Y. The company is considering adopting an activity-based costing system, and collects the following information for the month of October. Required:
(1) Compute the unit manufacturing cost of each product under a volume-based costing system based on direct labor hours.
(2) Compute the unit manufacturing cost of each product under the activity-based costing system.

Question

Altima Company uses an overhead costing system based on direct labor hours for its two products X and Y. The company is considering adopting an activity-based costing system, and collects the following information for the month of October.  Required:
(1) Compute the unit manufacturing cost of each product under a volume-based costing system based on direct labor hours.
(2) Compute the unit manufacturing cost of each product under the activity-based costing system.

Quizplus · Accepted Answer

The Answer of Altima Company uses an overhead costing system based on direct labor hours for its two products X and Y. The company is considering adopting an activity-based costing system, and collects the following information for the month of October.  Required:
(1) Compute the unit manufacturing cost of each product under a volume-based costing system based on direct labor hours.
(2) Compute the unit manufacturing cost of each product under the activity-based costing system.

Altima Company Uses an Overhead Costing System Based on Direct