MC Qu. 166 Penegar, Inc., manufactures and ... Penegar, Inc., manufactures and sells two products: Product X7 and Product S4. 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 Direct Labor-Hours Per Unit Total Direct Labor-Hours Product X7 200 9.0 1,800 Product S4 100 6.0 600 Total direct labor-hours 2,400 The direct labor rate is $21.60 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product X7 $128.70 Product S4 $174.10 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product X7 Product S4 Total Labor-related DLHs $78,456 1,800 600 2,400 Machine setups setups 74,635 600 500 1,100 General factory MHs 98,091 4,200 3,900 8,100 $251,182 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product S4 would be closest to: $627.96 per unit $72.66 per unit $407.10 per unit $196.14 per unit

MC Qu. 166 Penegar, Inc., manufactures and. Penegar, Inc.,.manufactures and sells two products: Product X7 and Product S4. 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 Total Direct Labor- Hours Product X7 Product S4 Total direct labor hours 200 9.0 1800 100 6.0 600 2.400 The direct labor rate is $2160 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit $128.70 $174.10 Product X7 Product S4 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 PoolsActivity Measures Overhead Cost $78,456 74,635 98,091 $251182 Product X7 Product S4 Total 600 2,400 500 1100 3,900 8,100 1,800 600 4,200 DLHs Labor-related Machine setups setups General factory MHs If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product S4 would be closest to $62796 per unit O $72.66 per unit O $40710 per unit $196.14 per unit Activate Windows