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Faz, Inc., manufactures and sells two products: Product XO and Product W7. Data concerning the expected production of each product and the expected total direct
Faz, Inc., manufactures and sells two products: Product XO and Product W7. 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-Hours Per Unit Expected Production 2,000 460 Product xo Product W7 Total direct labor-hours 6 2 Total Direct Labor-Hours 12,000 920 12,920 The direct labor rate is $25.60 per DLH. The direct materials cost per unit is $150.50 for Product XO and $132 for Product W7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS orders MHS Estimated Overhead Cost $278,078 19,548 241,094 $538, 720 Product xo 12,000 560 4,060 Product W7 920 760 4,160 Total 12,920 1,320 8,220 The overhead applied to each unit of Product XO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $59.54 per unit $161.38 per unit $192.81 per unit $250.18 per unit
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