Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lilich, Inc., manufactures and sells two products: Product U6 and Product RS. Data concerning the expected production of each product and the expected total direct
Lilich, Inc., manufactures and sells two products: Product U6 and Product RS. 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 730 1,090 Direct Labor- Hours Per Unit 9.3 6.3 Total Direct Labor-Hours 6,789 6,867 Product UG Product R5 Total direct labor- hours 13,656 The direct labor rate is $27.40 per DLH. The direct materials cost per unit for each product is glven below: Direct Materials Cost per Unit $250.28 $167.69 Product U6 Product RS The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Expected Activity Activity Cost Pools Lahar related Production orders Activity Measures DLHS orders Estimated Overhead Cost $ 202,638 71,940 Product 16 Product RS 6,789 6.862 1,25 1,150 Total 13,656 2,480 ENG 5:42 PM MO anything O The company is considering adopting an activity based casting system with the following activity cost pools, activity measures and expected activity Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS orders MHS Estimated Overhead Cost $ 202,638 71,840 1.819,603 $1,292,086 Product 16 Product R5 6,789 6,867 1,250 1,150 6,30 6,60e Total 13,656 2,400 12,900 Which of the following statements concerning the unit product cost of Product U6 is true? (Round your intermediate calculations to 2 decimal places) Multiple Choice The un product cost of Product Us under treational costing is less than a bibit product cast under activity based crosting by $34412 The un product cost of product UG under traditional casting is greater than its unit product cost under activity based costing by $9.98 et anything O ENG 2 PM 6/23/2020
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started