Seldomridge, Inc., manufactures and sells two products: Product 15 and Product UO. 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- Expected Hours Per Production Unit 7.0 200 10.0 Total Direct Labor- Hours 4,900 2,000 700 Product 15 Product 10 Total direct labor- hours 6,900 The direct labor rate is $24.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $116.10 $212.10 Product 15 Product 10 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Activity Cost Pools Measures Labor-related DLHS Product testing tests Order size MHS Estimated Overhead Cost $ 246, 468 10,494 837,660 $1,094,622 Product 15 Product UO 4,900 2,000 500 400 4,700 4,500 Total 6,900 900 9,200 The unit product cost of Product UO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,672.35 per unit $2,885.25 per unit $2,042.50 per unit $2,504.73 per unit Trone, Inc., manufactures and sells two products: Product R8 and Product K9. 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 200 1,000 Direct Labor- Hours Per Unit 9.0 10.0 Total Direct Labor- Hours 1,800 10,000 11,800 Product R8 Product K9 Total direct labor-hours The direct labor rate is $17.60 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $124.40 $221.20 Product R8 Product K9 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 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 Pools Labor-related Machine setups Order size Activity Measures DLHS setups MHS Estimated Overhead Cost $258, 302 98,098 147,552 $503,952 Product R8 Product K9 1,800 10,000 600 700 4,900 4,700 Total 11,800 1,300 9,600 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to: Multiple Choice $15.37 per DLH $21.89 per DLH $75.46 per DLH $42.71 per DLH Cracchiolo, Inc., manufactures and sells two products: Product H2 and Product A8. 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 7.0 Expected Production 200 800 Total Direct Labor- Hours 1,400 6,400 7,800 Product H2 Product A8 Total direct labor-hours 8.0 The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $145.80 for Product H2 and $261.90 for Product A8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Activity Cost Pools Measures Labor-related DLHS Production orders orders Order size MHS Estimated Expected Activity Overhead Cost Product H2 Product A8 Total $ 83,148 1,400 6,400 7,800 18,970 400 300 700 817,191 5,000 5,100 10,100 $919,309 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 A8 would be closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $647.28 per unit $216.80 per unit $942.88 per unit $85.28 per unit
