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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: 400 Expected Direct Labor-Hours Total Direct Labor- Production Per Unit Hours Product XO 1,000 5.0 5,000 Product W7 2.0 800 Total direct labor- 5,800 hours The direct labor rate is $19.60 per DLH. The direct materials cost per unit is $144.50 for Product XO and $126.00 for Product W7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Product Product Activity Cost Pools Measures Cost | XO 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 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 calculations to 2 decimal places.) $234.55 per unit $149.70 per unit $459.95 per unit $78.95 per unit
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