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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
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: Expected Production 800 300 Direct Labor- Hours Per Unit 7.0 9.0 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 for Product T6. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Production orders Order size Activity Estimated Expected Activity Measures Overhead Cost Product A4 Product T6 DLHS $ 402, 550 5,600 2,700 orders 61,705 300 MHs 656, 110 3,600 3,400 $1,120,365 400 Total 8,300 700 7,000 The unit product cost of Product A4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,381.41 per unit $1,30776 per unit $1,168.26 per unit $784.69 per unitStep by Step Solution
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