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Bobzien, Inc., manufactures and seis two products Product 17 and Product Z5. Data concerning the expected production of each product and the expected total direct
Bobzien, Inc., manufactures and seis two products Product 17 and Product Z5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS required to produce that outout appear below. Expected Production 300 800 Direct Labor- Hours Per Unit 5.0 3.0 Total Direct Labor Hours 1500 2.400 Product 37 Product 25 Total direct labor 3,900 The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $135.20 for Product B7 and $204.40 for Product 25. The 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 Activity Overhead Poola Measures Cost Product Product z5 Total Labor related DLHS $ 39,585 1,500 2,400 3,900 Production orders orders 26,884 500 600 1.100 Order bize 462, 768 4,600 4,700 9,300 $529,237 Mits The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to Multiple Choice 0 $53.77 per DLH 0 $44.81 per DLH 0 O $10.15 per DLH 0 $481.12 per DLH
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