Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Wardsworth, Inc., manufactures and sells two products Product 19 and Product 29. Data concerning the expected production of each product and the expected total direct
Wardsworth, Inc., manufactures and sells two products Product 19 and Product 29. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product 19 Product 29 Total direct labor-hours Expected Direct Labor- Total Direct Production Hours Per Unit Labor-Hours 700 6.0 4,200 900 8.0 7,200 11,400 The direct labor rate is $26.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product 19 $ 226.10 Product 29 $ 151.20 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Activity Cost Pools Measures Labor-related DLHS Machine setups setups Order size Estimated Overhead Cost $ 463,980 9,814 105,792 $ 579,586 Expected Activity Product 19 Product 29 Total 4,200 7,200 11,400 300 400 700 4,400 4,300 8,700 MHS The unit product cost of Product 19 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $455.06 per unit O $466.22 per unit $687.14 per unit $626.30 per unit
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