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Kroll, Inc., manufactures and sells two products: Product A4 and Product T6. Data concerning the expected production of each product and the expected total direct
Kroll, Inc., manufactures and sells two products: Product A4 and Product T6. 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 7.0 9.0 Expected Production 800 300 Total Direct Labor Hours 5,600 2,700 8,300 Product A4 Product T6 Total direct labor-hours The direct labor rate is $21.50 per DLH. The direct materials cost per unit is $212.40 for Product A4 and $295,50 Froduct T6 The company is considering adopting an activity-based costing system with the following activity cost pools, activity reasures and expected activity Activity Cost Pools Labor-related Production orders Order size Activity Estimated Expected Activity Measures Overhead Cost Product A4 Product T6 DLHS $ 102,550 5,600 2,700 orders 61,705 400 300 MHS 656, 119 3,600 3,400 Total 8,300 700 7,000 The unit product cost of Product A4 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1.019.01 per unit $1,30776 per unit $702 40 per unit $979.95 per unit
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