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A company makes two products-Product A and B. Data regarding the two products follow. Direct Labor-Hours per Unit 0.75 0.50 Annual Production 20,000 units 50,000
A company makes two products-Product A and B. Data regarding the two products follow. Direct Labor-Hours per Unit 0.75 0.50 Annual Production 20,000 units 50,000 units Product A Product B Additional information is as follows: a. Product A requires $15 in direct materials per unit, and Product B requires $8. b. The direct labor wage rate is $18 per hour. c. The company's activity-based absorption costing system has the following activity cost pools: Estimated Expected Activity Activity Cost Pool (and Activity Measures) Overhead Cost Product A Product B Machine setups (number of setups) $100,000 100 300 Special processing (machine-hours) $200,000 2,000 6,000 General factory (irect labor-hours) $150,000 15,000 25,000 Total 400 8,000 40,000 Using activity based absorption costing what is the total manufacturing cost oncluding direct materials, direct labor, and manufacturing overhead) for Product B7 Multiple Choice $1168,750 $1,125,890 $1,085,250 $1,220,500
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