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Bobzien, Inc., manufactures and sells two products: Product B7 and Product Z5. Data concerning the expected production of each product and the expected total direct
Bobzien, Inc., manufactures and sells two products: Product B7 and Product Z5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Direct Expected Labor-Hours Total Direct Production Per Unit Labor-Hours Product B7 300 1.500 Product 25 800 2.400 Total direct labor-hours 3.900 The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 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: Activity Cost Pools Activity Measures Estimated Overhead Cost DLHS $39.585 Expected Activity Product Product B7 Z5 Total 1,500 2.400 3,900 500 600 1,100 4,600 4.700 9.300 Labor-related Production orders Order size orders 26,884 MHS 462,768 $ 529.237 The unit product cost of Product B7 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) $1,066.17 per unit $692.82 per unit $974.69 per unit $890.20 per unit
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