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Kroll, Incorporated, manufactures and sells two products: Product A4 and Product T6. Data concerning the expected production of each product and the expected total
Kroll, Incorporated, 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: Product A4 Product T6 Total direct labor-hours Direct Labor Total Direct Expected Hours Per Labor- Production Unit Hours 800 7.0 5,600 300 9.0 2,700 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 Activity Cost Pools Measures Expected Activity Estimated Overhead Cost Product A4 Product T6 Total Labor-related Production orders DLHS $ 402,550 5,600 orders Order size MHS 61,705 656,110 400 3,600. 2,700 300 3,400 8,300 700 7,000 $ 1,120,365 The unit product cost of Product T6 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.)
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