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Cosgrove Company manufactures two products, Product K7 and Product L15, Product L15 is of fairly recent origin, having been developed as an attempt to enter

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Cosgrove Company manufactures two products, Product K7 and Product L15, Product L15 is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product K-7. Product L-15 is the more complex of the two products, requiring 2.0 hours of direct labor time per unit to manufacture compared to 1.Q hour of direct labor time for Product K-7. Overhead currently is applied to the products on the basis of direct labor pours. The company estimated it would incur $510,000 in manufacturing overhead costs and produce 10,000 units of Product L15 and 40,000 units of Product K7 during the current year. Unit costs for materials and labor are: The company is considering the use of activity-based costing as an alternative to its traditional costing method for manufacturing overhead. Data relating to the company's activity cost pools for the current year are given below: Compute total cost per unit for Product L-15 using activity-based costing for the allocation of activity costs. Example of Answer: 4.67 or 0.30 or 2.00 (Two decimal points. No comma, space, or $ sign) Cosgrove Company manufactures two products, Product K-7 and Product L-15. Product L-15 is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product K7. Product L15 is the more complex of the two products, requiring 2.0 hours of direct labor time per unit to manufacture compared to 1. hour of direct labor time for Product K-7. Overhead currently is applied to the products on the basis of direct labor hours. The company estimated it would incur $510,000 in manufacturing overhead costs and produce 10,000 units of Product L-15 and 40,000 units of Product K7 during the current year. Unit costs for materials and labor are: The company is considering the use of activity-based costing as an alternative to its traditional costing method for manufacturing overhead, Data relating to the company's activity cost pools for the current year are given below: Compute total cost per unit for Product L15 using activity-based costing for the allocation of activity costs. Example of Answer: 4.67 or 0.30 or 2.00 (Two decimal points. No comma, space, or $ sign)

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