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Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct
Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. 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- Total Direct Expected Production Hours Per Unit Labor-Hours 400 Product F9 3,200 800 Product U4 4 3,200 Total direct labor-hours 6,400 The direct labor rate is $24.20 per DLH. The direct materials cost per unit is $223 for Product F9 and $287 for Product U4 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 Overhead Activity Cost Pools Cost Product F9 Product U4 Total Measures Labor-related 3,200 3,200 6,400 DLHS $ 32,400 Production orders 500 800 1,300 51,440 orders Order size 3,100 104,830 3,500 6,600 MHs $188,670 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product U4 would be closest to: (Round your intermediate calculations to 2 decimal places.)
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