Answered step by step
Verified Expert Solution
Question
1 Approved Answer
AZ-45059 company makes and sells two products: Product W763 and Product 2237. The annual production and sales of Product W763 is 900 units and of
AZ-45059 company makes and sells two products: Product W763 and Product 2237. The annual production and sales of Product W763 is 900 units and of Product Z237 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 Direct Labor Hours Per Unit 2.0 1.0 Total Direct Labor- Hours 1,800 600 2,400 Product W763 Product Z237 Total direct labor-hours The direct labor rate is $24.10 per DLH. The direct materials cost per unit is $282.00 for Product W763 and $204.00 for Product 2237 The AZ-45059 company is considering adopting an activity based costing system with the following activity cost pools, activity measures, and expected activity: Activity Measures DLHS orders MHS Activity Cost Pools Labor-related Production orders Order Size Estimated Overhead Cost $ 41,036 62,430 433,475 $536, 941 Expected Activity Product Product W763 2237 Total 1.800 600 2,400 1,000 600 1,600 3,700 3,400 7.100 The unit product cost of Product W763 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) !! of 12 Next >
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