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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: Expected Production 1,000 410 Direct Labor-Hours Per Unit 5 Product xo Product W7 Total direct labor-hours Total Direct Labor-Hours 5,000 1,230 6,230 3 The direct labor rate is $20.60 per DLH. The direct materials cost per unit is $145.50 for Product XO and $127 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 $273, 078 19,048 241,674 $533,800 Product Xo 5,000 510 4,010 Product W7 1,230 710 4,110 Total 6,230 1,220 8,120 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 XO would be closest to: (Round your intermediate calculation to 2 decimal places.) Multiple Choice $219.16 per unit $148.81 per unit $428.40 per unit $78.07 per unit
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