Question
faz, inc., manufactures and sells two products: product X0 and W7. data concerning the expected production of each product and the expected total direct labor
faz, inc., manufactures and sells two products: product X0 and W7. data concerning the expected production of each product and the expected total direct labor hours (DLHs) requires to produce that output appear below: expected production X0 1,000, W7 400, direct labor hours product X0 5.0, W7 2.0, total direct labor hours X0 5,00, W7 800, total direct labor hours 5,800.
The direct labor rate is $19.60 per DLH. The direct materials cost per unit is $144.50 for product X0 and $126.00 for product W7. The company is condsidering adopting and activity-based costing system with the following activity cost pools, activity measures, and expected activity:
expected activity
activity cost pools; activity measures; Estimared overhead cost product X0 product w7 total labor related DLHs $272,078 5,000 800 5,800
production orders orders 18,948 500 700 1,200
order size MHs 242,514 4,000 4,100 8,100
$533,540
The overhead applied to each unit of product X0 under activity based costing is closet to:
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