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TB MC Qu. 4-149 Faz, Inc., manufactures and sells two products ... Faz, Inc., manufactures and sells two products: Product XO and Product W7. Data
TB MC Qu. 4-149 Faz, Inc., manufactures and sells two products ... Faz, Inc., manufactures and sells two products: Product XO and Product W7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Direct Labor-Hours Production Per Unit 1,500 5 560 2 2 Product K8 Product W7 Total direct labor-hours Total Direct Labor-Hours 7,500 1,120 8,620 The direct labor rate is $35.60 per DLH. The direct materials cost per unit is $160.50 for Product XO and $142 for Product W7. 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 Production orders Order size Activity Measures DLHS orders MHS Estimated Overhead Cost $288,078 20,548 251,894 $560,520 Product X 7,500 660 4,160 Product W7 1,120 860 4,269 Total 8,620 1,520 8,420 The overhead applied to each unit of Product XO under activity-based costing is closest to: (Round your Intermediate calculations to 2 decimal places.) Multiple Choice $82.98 per unit $257.60 per unit $256.03 per unit O $325.13 per unit
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