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Arex company is using an activity-based costing (ABC) system. The company produces and sellistwo products Basic and Pro. The company consists of two departments Production

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Arex company is using an activity-based costing (ABC) system. The company produces and sellistwo products Basic and Pro. The company consists of two departments Production (where all manufacturing activities are taken and Marketing (which engages in selling and admin activity only. The ABC system includes in un product costs all costs easily associated with units. In addition, in the ABC system, there are four major indirect activities Machine Setups. Special Processing. Factory Supervision and Customer Relation The prices, direct material cost (DM) shipping cost and direct lobor-hours (DLHS) are given below for one unit of the product, as well as the total units produced and sold Product Basic Pro Price $180 $320 DM $50 $80 D LHS 1 2 Hourly Wage-DL $10 $12 Shipping Cost Units 6.000 4000 The company collected the data for ABC as follows: Activity Cost Pool Activity Measure Estimated OH cost Machine Setup Special Processing Factory Supervision Customer Relation (10 customers) of setups Machine hours DLH $ $ $ $ 472500 360,000 224.000 240.000 0000 of customers Under the ABC system, what is the unit product cost for Basic? (Choose the closest amount) Multiple Choice $126.75

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