Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q16. It's a bit big question. Please see all the pictures provided. I appreciate your help. Thank you! RSGNWF785 Corp. makes and sells two products

Q16. It's a bit big question. Please see all the pictures provided.

I appreciate your help. Thank you!

image text in transcribed

image text in transcribed

image text in transcribed

RSGNWF785 Corp. makes and sells two products Product DUH and Product POP RSGNWF785 is currently using a traditional costing system with direct labor hours as an activity base, to allocated manufaturing overhead to products. 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 780 380 Total Direct Labor- Hours 4,524 1,064 5,588 Product DUH Product POP Total direct labor-hours 5.8 2.8 RSGNWF785's direct labor rate is $22.90 per DLH. The direct materials cost per unit for each product is given below: (ID=87057) Direct Materials Cost per Unit Product DUH $121.10 Product POP $121.50 RSGNWF785 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 $ 59,555 58,390 369,508 $ 487,453 Product DUH Product POP 4,524 1,064 800 640 5, 200 5,900 Total 5,588 1,440 11,100 Q. Which of the following statements concerning the unit product cost of Product DUH is true? (Round your intermediate calculations to 2 decimal places.) Multiple Choice The unit product cost of Product DUH under traditional costing is less than its unit product cost under activity- based costing by $300.66. The unit product cost of Product DUH under traditional costing is greater than its unit product cost under activity-based costing by $300.66 Multiple Choice The unit product cost of Product DUH under traditional costing is less than its unit product cost under activity- based costing by $300.66. The unit product cost of Product DUH under traditional costing is greater than its unit product cost under activity-based costing by $300.66 The unit product cost of Product DUH under traditional costing is less than its unit product cost under activity- based costing by $180.58 The unit product cost of Product DUH under traditional costing is greater than its unit product cost under activity-based costing by $180.58

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capex A Knowledge Based Expert System For Substantive Audit Planning

Authors: J. Efrim Boritz, Anthony K. P. Wensley

1st Edition

1558760563, 978-1558760561

More Books

Students also viewed these Accounting questions