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Appleby, Incorporated, manufactures and sells two products: Product Q9 and Product V8. Data concerning the expected production of each product and the expected total direct
Appleby, Incorporated, manufactures and sells two products: Product Q9 and Product V8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below. Product Q9 Product V8 Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size Multiple Choice Activity Measures $249.03 per unit Expected Production 800 1,000 The direct labor rate is $29.30 per DLH. The direct materials cost per unit is $174.80 for Product Q9 and $168.90 for Product V8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: DLHS orders MHS Direct Labor-Hours Per Unit 5.0 3.0 Estimated Overhead Cost $ 214,480 41,065 192,700 $ 448,245 Total Direct Labor-Bours 4,000 3,000 7,000 Expected Activity Product V8 3,000 200 4,000 Product 09 4,000 300 4,200 The overhead applied to each unit of Product V8 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Total 7,000 500 8,200
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