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This is my solution to the answer, 96, is this correct? 15. A company manufactures two products: A and B. The company's accounting records revealed
This is my solution to the answer, 96, is this correct?
15. A company manufactures two products: A and B. The company's accounting records revealed the following per-unit costs for direct material and direct labor: Product AT Product B Production volume (units) 2,500 10,000 Prochent B =DM84 +DL2+ mot Direct material $84 Direct labor 4 hours at $12/hour 1 hour at $12/bour $12 S16 $48 Management is considering a shift to activity-based costing and gathered the following data: Expected Activity Activity Cost Pool Estimated Cost Activity cost driverl Product A Product B otal Setups $240.000 20001 Number of setups 80 40 120 General factory $600.000 30 per Direct labor hours 10.000 10,000 20.000 Machine processing $120,000 4 Machine bours 1.000 3.000 Assuming that actual activity is the same as expected activity, what is the unit product cost of Product B under activity-based costing? a. $138 b. $123 c. $118 d. $96 e. None of the above 40 x 2000 30000 40 2000 1.000 x 30 = 300,000 10000 = 30 1000 x 40 40,000/1000 = 40 2070 % 10.000 6 94.207Step by Step Solution
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