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AZ 90337 company makes and sells two products Product W126 and Product 2917 The annual production and sales of Product W126 is 900 units and
AZ 90337 company makes and sells two products Product W126 and Product 2917 The annual production and sales of Product W126 is 900 units and of Product 2917 is 600 units. 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 900 600 Product W126 Product Z917 Total direct labor-hours Direct Total Labor-Hours Direct Per Unit Labor Hours 2.0 1,800 1.0 600 2,400 The direct labor rate is $24.10 per DLH. The direct materials cost per unit is $28200 for Product W126 and $204.00 for Product 2917 The AZ-90337 company is considering adopting an activity based costing system with the following activity cost pools, activity meatures and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product W126 Product 2917 Total Labor-related DLHS $ 41,036 1,800 600 2,400 Production orders orders 62,430 1,000 600 1,600 Order size 433,475 3,700 3,400 7,100 $536,941 2 The unit product cost of Product W126 under activity-based costing is closest to (Round your intermediate calculations to 2 decimal places) 140
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