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Mahaley, Inc., manufactures and sells two products: Product Q9 and Product FO. Data concerning the expected production of each product and the expected total direct
Mahaley, Inc., manufactures and sells two products: Product Q9 and Product FO. 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- Expected Hours Per Production Unit 940 9.4 940 7.4 Total Direct Labor- Hours 8,836 6,956 15,792 Product 09 Product FO Total direct labor-hours The direct labor rate is $23.20 per DLH. The direct materials cost per unit for each product is given below. Direct Materials Cost per Unit $176.30 $148.10 Product 09 Product Fo The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Coat Pools Labor-related Machine setups Order size Estimated Expected Activity Activity Overhead Measures Cost Product 09 Product PO Total DLS $393,6808,836 6,956 15,792 setups 50,830 50,00 1,000 900 1,900 M 291,700 4,500 4,300 8,800 $736,210 The unit product cost of Product FO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
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