Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions