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A company makes two products-product A and 3. Data regarding the two products follow: Direct Labor-Hours per Unit 0.75 Product A Product B Annual
A company makes two products-product A and 3. Data regarding the two products follow: Direct Labor-Hours per Unit 0.75 Product A Product B Annual Production units 50 , gee units Additional information is as follows: a Product A requires $40 in direct materials per unit. and Product E requires $32 The direct labor wage rate is $18 per hour. c. The company's activity-based absorption costing system has the following activity cost pools. Activity Cost Pool (and Activity measures) Machine setups (number of setups) Special processing (machine-hours) General factory (Direct labor-hours) Estimated pverhead Cost S lae,ea S 2ae,a S 15,ea Expected Activity Product A Product 3 2, oe 15, oe 6, eoe 25, eoe Total 8, oe 4g, oe How much overhead cost wcn_'ld be assigned from the Special processing activity to Product A? Multiple Croce
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