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TB MC Qu. 4-95 (Static) Overturf, Incorporated, manufactures and sells... Overturf, Incorporated, manufactures and sells two products: Product Y1 and Product YO. Data concerning the
TB MC Qu. 4-95 (Static) Overturf, Incorporated, manufactures and sells... Overturf, Incorporated, manufactures and sells two products: Product Y1 and Product YO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product Y1 Product YO Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size Direct Labor- Expected Hours Per Production Unit 300 6.0 500 9.0 The direct labor rate is $27.50 per DLH. The direct materials cost per unit is $106.10 for Product Y1 and $168.40 for Product YO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Measures DLHS orders MHs Total Direct Labor- Hours 1,800 4,500 6,300 Estimated Overhead Cost $ 151,263 43,253 863,478 $ 1,057,994 Expected Activity Product Y1 Product YO 1,800 300 4,900 4,500 400 5,000 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Total 6,300 700 9,900
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