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The 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
The 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 The Activity Rates $7.00 per direct labor-hour $5.00 per machine-hour $ 40.00 per setup $ 200.00 per order $ 120.00 per shipment $5.00 per direct labor-hour company expects to produce two products whose cost and activity information is as follows: Direct materials cost per unit Direct labor cost per unit $ 7.00 $ 4.00 $ 50.00 $ 10.00 2,000 100 Number of units produced per year Total Expected Activity Direct labor-hours 1,000 20 Machine-hours 3,400 20 Machine setups 8 Production orders 6 Shipments 7 2 The unit product cost of 2 under activity-based costing is closest to: (Do not round intermediate calculations. Round your final answer to 2 decimal places) $10.60 $ 26.68 $ 15.68 $ 70.60
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