Teach Gear Inc. produces 3 types of office equipment; Bronze, silver and Gold and uses an activity-based product costing system. They have identified 5 activities. Each activity, it costs and related activity driver is summarized below: Activity Cost Activity driver Material handling P120,000 Number of parts Material insertion 240,000 Number of parts Automated 350,000 Machine hours Machinery finishing 150,000 Labor hours Packaging 90,000 Orders shipped The following data are provided for each product line: Activity Bronze Silver Gold Units to be produced 6,000 4,000 2,000 Orders to be shipped 1,200 800 400 Number of parts per unit 4. 5 8 Machine hours per unit 1 2 3 Labor hours per unit 2 3 3 b. the computation of the estimated volume (TOTAL PARTS, TOTAL MACHINE HOURS, TOTAL LABOR HOURS AND ORDERS TO BE SHIPPED)

Teach Gear Inc. produces 3 types of office equipment; Bronze, silver and Gold and uses an activity-based product costing system. They have identified 5 activities. Each activity, it costs and related...

Teach Gear Inc. produces 3 types of office equipment; Bronze, silver and Gold and uses an activity-based product costing system. They have identified 5 activities. Each activity, it costs and related activity driver is summarized below:

Activity	Cost	Activity driver
Material handling	P120,000	Number of parts
Material insertion	240,000	Number of parts
Automated	350,000	Machine hours
Machinery finishing	150,000	Labor hours
Packaging	90,000	Orders shipped

The following data are provided for each product line:

Activity	Bronze	Silver	Gold
Units to be produced	6,000	4,000	2,000
Orders to be shipped	1,200	800	400
Number of parts per unit	4.	5	8
Machine hours per unit	1	2	3
Labor hours per unit	2	3	3

b. the computation of the estimated volume (TOTAL PARTS, TOTAL MACHINE HOURS, TOTAL LABOR HOURS AND ORDERS TO BE SHIPPED)

Jun 02, 2022

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Teach Gear Inc. produces 3 types of office equipment; Bronze, silver and Gold and uses an activity-based product costing system. They have identified 5 activities. Each activity, it costs and related...

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