Question
Faz, Incorporated, manufactures and sells two products: Product X0 and Product W7. Data concerning the expected production of each product and the expected total
Faz, Incorporated, manufactures and sells two products: Product X0 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. Product X0 Product W7 Total direct labor-hours Expected Direct Labor- Production Hours Per Unit 1,500 540 5 3 Total Direct Labor-Hours 7,500 1,620 9,120 The direct labor rate is $33.60 per DLH. The direct materials cost per unit is $158.50 for Product XO and $140 for Product W7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Activity Estimated Activity Cost Pools Labor-related Measures Overhead Cost DLHS Production orders Order size orders MHS $286,078 20,348 249,894 Expected Activity Product X0 Product W7 7,500 1,620 640 4,140 Total 9,120 840 4,240 1,480 8,380 $ 556,320 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.) Faz, Incorporated, manufactures and sells two products: Product X0 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. Product X0 Product W7 Total direct labor-hours Expected Direct Labor- Production Hours Per Unit 1,500 540 5 3 Total Direct Labor-Hours 7,500 1,620 9,120 The direct labor rate is $33.60 per DLH. The direct materials cost per unit is $158.50 for Product XO and $140 for Product W7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Activity Estimated Activity Cost Pools Labor-related Measures Overhead Cost DLHS Production orders Order size orders MHS $286,078 20,348 249,894 Expected Activity Product X0 Product W7 7,500 1,620 640 4,140 Total 9,120 840 4,240 1,480 8,380 $ 556,320 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.)
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