Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mckenny, Inc, manufactures and sells two products Product P9 and Product X2. Data concerning the expected production of each product and the exp direct
Mckenny, Inc, manufactures and sells two products Product P9 and Product X2. Data concerning the expected production of each product and the exp direct labor hours (DLH) required to produce that output appear below Product P Product X2 Total direct labor-hours Expected Production Direct Labor Hours Per Unit Total Direct Labor Hours 150 100 60 5.0 900 500 1,400 The direct labor rate is $28.20 per DLH. The direct materials cost per unit is $140 60 for Product P9 and $10750 for Product X2 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Overhead Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLH Cost Product P9 Product X2 Total $ 45,400 900 500 1,400 orders 119.964 600 700 1300 Mits 459,818 $625382 3,200 2.900 6.300 If the company allocates all of its ovemead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product X2 would be closest to: (Round your intermediate calculations to 2 decimal places.)
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