Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The options are a. $492.89 per unit b. $264.89 per unit c. $597.69 per unit d. $825.69 per unit Arntson, Inc., manufactures and sells two
The options are
a. $492.89 per unit
b. $264.89 per unit
c. $597.69 per unit
d. $825.69 per unit
Arntson, Inc., manufactures and sells two products: Product R3 and Product NO. The annual production and sales of Product of R3 is 1.200 units and of Product NO is 200 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Labor-Hours Per Unit Expected Production 1,200 200 Total Direct Labor- Hours 4,800 400 5,200 Product R3 Product NO Total direct labor-hours 4.0 2.0 The direct labor rate is $26.20 per DLH. The direct materials cost per unit is $228.00 for Product R3 and $300.00 for Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product R3 Product NO Total Labor-related DLHS $ 40,536 4,800 400 5,200 Production orders orders 60,270 1,300 200 1,500 Order size MHS 432,975 3,900 3,500 7,400 $533,781 The unit product cost of Product R3 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started