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Use the information below to answer the three questions that follow. A company is a manufacturing company and using an activity-based costing (ABC) system
Use the information below to answer the three questions that follow. A company is a manufacturing company and using an activity-based costing (ABC) system to allocate the company's manufacturing overhead to the two products they sell: QX9 and ZV6. The following selected additional information is available for the most recent year: Expected Activity Activity Cost Pool Activity Measure Estimated OH Cost Product QX9 Product ZV6 Total Supporting direct labor direct labor-hours $920,000 12,000 34,000 46,000 DLHS Machine setups Number of setups $210,000 400 300 Product design Number of products $48,000 1 Number of customers $100,000 700 setups 2 products 100 customers Customer Relation Other Total manufacturing overhead cost Selling price per unit Per unit direct materials cost Per unit direct labor cost Per unit direct labor hours Annual production and sales $524,000 $1,702,000 Product QX9 Product ZV6 $200 $110 $17.5 $23 $10 $20 1 2 DLHS 12,000 17,000 units
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