Controlling Assignment - B $5.10 $14.00 C The difference...

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ABC Corporation Minutes Per Unit 3 30 Minutes in 1 Hour 60 60 Direct Materials $3.00 $3.00 Labor per Hour $20.00 $20.00 Units Produced 50,000 5,000 Other Costs $30,000.00 $30,000.00 Total Labor Hours $55,000.00 $5,000.00 Direct Costs $4.00 $13.00 APPARENT UNIT COST OF EA. PRODUCT A Product X Product Y $4.60 $19.00 Product X Product Y
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Unformatted text preview: B $5.10 $14.00 C The difference that the corporation faces after adopting Activity based cost is that the cost of product X increases and product y decreases as the cost is allocated on the basis of activity rather than job. So, overall cost is reduced from $23.60 to $19.10 on the...
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