Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Faz, line., manufactures and sells two products Product XO and Product W7. Data concerning the expected production of each product and the expected total direct

image text in transcribed
image text in transcribed
Faz, line., 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 Direct Labor- Total Direct Production Bours Per Unit Labor-Hours Product XO 1,000 5,000 Product W7 520 3 1.560 Total direct labor-hours 6,560 5 The direct labor rate is $3160 per DLH. The direct materials cost per unit is $156.50 for Product XO and $138 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 Activity Cost Poolm Measuren Cont Product xo Product W7 Total Labor-related $284,078 5,000 1,560 5,560 Production orders orders 20,148 620 1.440 Order Bize 247,094 4, 120 4,220 8,340 $551,320 DLHS 820 MH Help Which of the following statements concerning the unit product cost of Product W7 is true? (Round your intermediate calculations to 2 decimal places. Save & Edt Multiple Choice The unit product cost of Product W7 under traditional conting is greater than its unit product cost under activity-based costing by $140.30 The unit product cost of Product W7 under traditional conting is less than itu unit product cost under activity-based costing by $4912 The unit product cost of Product W7 under traditionat costing is greater than its unit product cost under active based costing by $48:13 The unit product cost of Product W7 under traditional costing is less than its unit product cost under activity based costing by $140.30

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

15th edition

978-0133428858, 133428850, 133428702, 978-0133428704

More Books

Students also viewed these Accounting questions

Question

What has been your desire for leadership in CVS Health?

Answered: 1 week ago

Question

Question 5) Let n = N and Y Answered: 1 week ago

Answered: 1 week ago