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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 Expected Labor-Hours Total Direct Production Per Unit Labor-Hours Product A4 800 7.0 5,600 Product T6 300 9.0 2.700 Total direct labor-hours 8,300 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 Activity Estimated Pools Measures Overhead Cost Expected Activity Product Product A4 T6 Total Labor-related DLHS $402.550 5,600 2.700 8.300 Production orders orders 61,705 400 300 700 Order size MHs 656,110 3,600 3,400 7,000 $1,120.365 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.) O $702.40 per unit O $979.95 per unit 101001 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.) $702.40 per unit $979.95 per unit O $1,019.01 per unit O $1.307.75 per unit
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