Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

25 01:56:43 Rondeau, Incorporated, manufactures and sells two products: Product V9 and Product M6. Data concerning the expected production of each product and the expected

25 01:56:43 Rondeau, Incorporated, manufactures and sells two products: Product V9 and Product M6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product V9 Product M6 Total direct labor-hours Product V9 Product M6 Direct Materials Cost per Unit $ 291.60 $184.80 Activity Cost Pools Labor-related The direct labor rate is $27.40 per DLH. The direct materials cost per unit for each product is given below: Product testing Order size Expected Production 660 760 Direct Labor-Hours Per Unit The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Measures DLHS Tests MHS 12.6 9.6 Total Direct Estimated Overhead Labor-Hours 8,316 7,296 15,612 Cost $ 103,656 76,808 402,000 $ 582,464 Product V9 8,316 1,140 5,700 Expected Activity Product M6 7,296 1,520 5,040 Total 15,612 2,660 10,740 Required: Calculate the difference between the unit product costs under the traditional costing method and the activity-based costing system for each of the two products. (Round your intermediate calculations and final answers to 2 decimal places. Enter your answers as positive values.)
image text in transcribed
image text in transcribed
Rondeau, Incorporated, manufactures and sells two products: Product v9 and Product M6. Data concerning the expected production of each product and the expected total direct labot hours (DUis) required to produce that output apDear below The direct labor rate is $27.40 por DLH. The direct materials cost per unit for each product is given below The company is considering adopting an activity based costing system with the following activity cost pools, activity measures, and expected octivity: Required: Calculate the difference between the unit product costs under the traditional costing method and the activity-based costing system fo oactr of the two products, (Round your intermedlate calculations and final answers to 2 decimal places, Enter your answers as positive values.) Required: Catcutite the difference between the unit product costs under the traditional costing method and the activity-based costing system for each of the two products. (Round your intermediate calculations and final answers to 2 decimal places. Enter your answers as positive values.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Standards Board Webster S Timeline History 1971 2006

Authors: Icon Group International

1st Edition

0546876501, 978-0546876505

More Books

Students also viewed these Accounting questions

Question

Solve for x: 2(3x 1)2(x + 5) = 12

Answered: 1 week ago