Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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
image text in transcribed
image text in transcribed
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: The direct labor rate is $17.40 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Which of the following statements concerning the unit product cost of Product NO is true? (Round your intermediate calculations to 2 decimal places.) The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Which of the following statements concerning the unit product cost of Product NO is true? (Round your intermediate calculations to 2 decimal places.) Multiple Choice The unit product cost of Product NO under traditional costing is less than its unit product cost under activity-based costing by $3,494,65. The unit product cost of Product NO under traditional costing is greater than its unit product under activity-based costing by $3,494,65. The unit product cost of Product NO under traditional costing is less than its unit product cost under activity-based costing by $337.28. The unit product cost of Product NO under traditional costing is greater than its unit product under activity-based costing by $337.28

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

The Routledge Companion To Auditing

Authors: David Hay, W. Robert Knechel, Marleen Willekens

1st Edition

1138363081, 978-1138363083

Students also viewed these Accounting questions

Question

mple 10. Determine d dx S 0 t dt.

Answered: 1 week ago

Question

Analyze the impact of labor unions on health care.

Answered: 1 week ago

Question

Assess three motivational theories as they apply to health care.

Answered: 1 week ago

Question

Discuss the history of U.S. labor unions.

Answered: 1 week ago