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Please Explain the answers for this two! 3. A company manufactures two products: A and B. The company's accounting records revealed the following per-unit costs
Please Explain the answers for this two!
3. A company manufactures two products: A and B. The company's accounting records revealed the following per-unit costs for direct material and directlabor: Product A Product B 10,000 Production volume (units) 2,500 S16 Direct material S84. Direct labor: S483 4 hours at S12 hour S12 1 hour at $12/hour Management is considering a shift to activity-based costing and gathered the following data: Expected Activity Activity Cost Pool Estimated Cost Activity cost driver Product A Product B LTotal Setup S240,000 Number of setups 80 40 120 Direct labor hours 10,000 10,000 General factory S600,000 20,000 Machine hours 3,000 Machine processing S120,000 000 1,000 Assuming that actual activity is the same as expected activity, what is the unit product cost of Product B under activity-based costing? a. $138 b. $123 c. $118 d. $96 e. None of the aboveStep by Step Solution
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