Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company manufactures and sells two products: Product A1 and Product C4. Data concerning the expected production of each product and the expected total direct
A company manufactures and sells two products: Product A1 and Product C4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production 500 1,000 Direct Labor- Hours Per Unit 8.0 4.0 Product A1 Product C4 Total direct labor-hours Total Direct Labor-Hours 4,000 4,000 8,000 The direct labor rate is $26.70 per DLH. The direct materials cost per unit is $245 for Product A1 and $217 for Product C4. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS orders MHS Estimated Overhead Cost $ 45, 100 71,600 145,910 $262,610 Product A1 Product C4 4,000 4,000 600 1,000 3,600 3,200 Total 8,000 1,600 6,800 The total cost per unit of Product C4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started