Question
Mckenny, Incorporated, manufactures and sells two products: Product P9 and Product X2. Data concerning the expected production of each product and the expected total
Mckenny, Incorporated, manufactures and sells two products: Product P9 and Product X2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product P9 Product X2 Total direct labor-hours Direct Labor- Total Direct Expected Hours Per Labor- Production Unit Hours 200 6.0 1,200 100 5.0 500 1,700 The direct labor rate is $28.20 per DLH. The direct materials cost per unit is $140.60 for Product P9 and $107.50 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 Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product P9 Product x2 Total Labor-related DLHB Production orders Order size orders MHs $ 45,084 119,964 459,818 1,200 600 500 1,700 700 1,300 3,200 2,900 6,100 $ 624,866 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 P9 would be closest to: (Round your intermediate calculations to 2 decimal places.)
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