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Banton, Incorporated, manufactures and sells two products: Product NO and Product A8. Data concerning the expected production of each product and the expected total direct
Banton, Incorporated, manufactures and sells two products: Product NO and Product A8. 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 400 6.0 100 4.0 Total Direct Labor- Hours 2,400 400 Product NO Product A8 Total direct labor-hours 2,800 The direct labor rate is $16.50 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 288.50 $ 232.70 Product NO Product A8 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Machine setups Order size Activity Measures DLHS setups MHS Estimated Overhead Cost $ 77, 448 28,064 359,134 $ 464,646 Expected Activity Product NO Product A8 Total 2,400 400 2,800 300 500 800 4,000 3,900 7,900 The unit product cost of Product NO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) The unit product cost of Product NO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,034.37 per unit $1,316.79 per unit $842.10 per unit $1,383.20 per unit
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