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TB MC Qu. 4-170 (Static) Nole, Incorporated, manufactures and sells... Nole, Incorporated, manufactures and sells two products: Product W8 and Product NO. Data concerning the
TB MC Qu. 4-170 (Static) Nole, Incorporated, manufactures and sells... Nole, Incorporated, manufactures and sells two products: Product W8 and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product W8 Product NO Total direct labor-hours Product W8 Product N The direct labor rate is $17.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 176.40 $280.50 Activity Cost Pools Labor-related Expected Production 100 1,000 Machine setups Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Direct Labor- Hours Per Unit 9.0 11.0 Activity Measures DLHS setups MHs Total Direct Labor-Hours 900 11,000 11,900 Estimated Overhead Cost $ 461,720 25,865 796,220 $ 1,283,805 Expected Activity Product W8 Product N 900 300 4,000 11,000 400 4,200 Which of the following statements concerning the unit product cost of Product NO is true? (Round your intermediate calculations to 2 decimal places.) Total 11,900 700 8,200
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