Question
AZ-21759 company makes and sells two products: Product W848 and Product Z373. The annual production and sales of Product W848 is 1,100 units and of
AZ-21759 company makes and sells two products: Product W848 and Product Z373. The annual production and sales of Product W848 is 1,100 units and of Product Z373 is 300 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 Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W848 1,100 2.0 2,200 Product Z373 300 1.0 300 Total direct labor-hours 2,500 The direct labor rate is $21.10 per DLH. The direct materials cost per unit is $229.00 for Product W848 and $220.00 for Product Z373. The AZ-21759 company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W848 Product Z373 Total Labor-related DLHs $ 41,336 2,200 300 2,500 Production orders orders 64,730 1,200 300 1,500 Order size MHs 433,775 2,800 3,700 6,500 $ 539,841 The unit product cost of Product W848 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) rev: 03_25_2018_QC_CS-119201 Multiple Choice $750.19 per unit $521.19 per unit $249.99 per unit $478.99 per unit
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