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Mahaley, Inc., manufactures and sells two products: Product Q9 and Product FO. Data concerning the expected production of each product and the expected total direct
Mahaley, Inc., manufactures and sells two products: Product Q9 and Product FO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Labor-Hours Per Unit Expected Production Total Direct Labor- Hours 7,921 6,141 14,062 890 Product 09 Product FB Total direct labor-hours 8.9 6.9 890 The direct labor rate is $22.70 per DLH. The direct materials cost per unit for each product is given below. Direct Materials Cost per Unit $175.80 $147.60 Product 09 Product FO 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 Labor-related Machine setups Order size Activity Measures DLHS setups MHS Estimated Overhead Cost $388,680 48,330 289, 200 $726, 210 Product 09 7,921 750 4,000 Product Fo 6,141 650 Total 14,062 1,400 7,800 3,800 Multiple Choice $752.08 per unit $678.48 per unit $377.83 per unit $521.85 per unit Mahaley, Inc., manufactures and sells two products: Product Q9 and Product FO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Labor-Hours Per Unit Expected Production Total Direct Labor- Hours 7,921 6,141 14,062 890 Product 09 Product FB Total direct labor-hours 8.9 6.9 890 The direct labor rate is $22.70 per DLH. The direct materials cost per unit for each product is given below. Direct Materials Cost per Unit $175.80 $147.60 Product 09 Product FO 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 Labor-related Machine setups Order size Activity Measures DLHS setups MHS Estimated Overhead Cost $388,680 48,330 289, 200 $726, 210 Product 09 7,921 750 4,000 Product Fo 6,141 650 Total 14,062 1,400 7,800 3,800 Multiple Choice $752.08 per unit $678.48 per unit $377.83 per unit $521.85 per unit
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