Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

AZ-74703 company makes and sells two products: Product W863 and Product Z755. The annual production and sales of Product W863 is 1,000 units and of

image text in transcribed
image text in transcribed
AZ-74703 company makes and sells two products: Product W863 and Product Z755. The annual production and sales of Product W863 is 1,000 units and of Product Z755 is 200 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Direct Labor- Expected Hours Per Production Unit 1,000 10.0 200 5.0 Total Direct Labor- Hours 10,000 1,000 11,000 Product W863 Product 2755 Total direct labor-hours The direct labor rate is $25.00 per DLH. The direct materials cost per unit is $233.00 for Product W863 and $200.00 for Product 2755 The AZ-74703 company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Product Product Activity Cost Pools Measures Cost W863 2755 Total Labor-related DLHS $ 39,936 10,000 1,000 11,000 Production orders orders 64,000 1,100 200 1,300 Order size MHS 432,375 2,800 3,200 6,000 $536,311 The unit product cost of Product W863 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $525.22 per unit $1.008.22 per unit $775.22 per unit $292 22 per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Loose Leaf For Financial Accounting Fundamentals

Authors: John Wild, Ken Shaw, Barbara Chiappetta

6th Edition

1260151980, 978-1260151985

More Books

Students also viewed these Accounting questions

Question

4. Label problematic uses of language and their remedies

Answered: 1 week ago