Question
The ABM-13425 company's activity-based costing system uses the following activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders
The ABM-13425 company's activity-based costing system uses the following activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates $5.00 per direct labor-hour $ 4.00 per machine-hour $ 60.00 per setup $100.00 per order $120.00 per shipment $ 4.00 per direct labor-hour The ABM-13425 company expects to produce two products whose cost and activity information is as follows: Direct materials cost per unit Direct labor cost per unit Number of units produced per year Total Expected Activity XR11 S13 Direct labor-hours 1,200 40 Machine-hours 2,800 20 Machine setups 7 4 7 4 5 4 XR11 $ 3.50 $ 3.75 S13 $ 20.00 $ 9.00 2,000 400 Production orders Shipments The unit product cost of XR11 under activity-based costing is closest to: (Do not round intermediate calculations. Round your final answer to 2 decimal places) $ 32.90 $ 19.11 $ 3.90 $ 11.86
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