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U. S104 e. None of the above #10. Suppose the company uses conventional job-order costing with a plantwide predetermined overhead rate and direct labor hours

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U. S104 e. None of the above #10. Suppose the company uses conventional job-order costing with a plantwide predetermined overhead rate and direct labor hours as the allocation base. Assuming that actual and expected direct labor hours are the same, what is the unit product cost of Product A under conventional job-order costing? a. $165 b. $205 c. $185 d. $161 e. None of the above A company manufactures two products: A and B. The company's accounting records revealed the following per-unit costs for direct materials and direct labor: Product Product B Production volume (units) 4,000 5.000 Direct materials $40 $60 Direct labor: 2.5 hours at $10/hour 2 hours at $10/hour $25 $20 Management is considering a shift to activity-based costing and gathered the following manufacturing overhead data: Activity Cost Pool Activity cost driver Expected Activity Product A Product B Setups General factory Machine processing Estimated OH Cost $240,000 $600,000 $120,000 Number of setups Direct labor hours Machine hours 10.000 2,000 10.000 1,000 #9. Assuming that actual activity is the same as expected activity, what is the unit product cost of Product B under activity-based costing? a. $144 b. $164 c. $124 d. $ 104 e. None of the above #10. Suppose the company uses conventional job-order costing with a plantwide predetermined overhead rate and direct labor hours as the allocation base. Assuming that actual and expected direct labor hours are the same, what is the unit product cost of Product A under conventional job-order costing? a $165 b. $205 c. $185 d. $161 e. None of the above

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