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Wlodarczyk, Inc., manufactures and sells two products: Product J0 and Product Q9. Data concerning the expected production of each product and the expected total direct
Wlodarczyk, Inc., manufactures and sells two products: Product J0 and Product Q9. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Production | Direct Labor-Hours Per Unit | Total Direct Labor-Hours | |
Product J0 | 500 | 5.0 | 2,500 |
Product Q9 | 900 | 7.0 | 6,300 |
Total direct labor-hours | 8,800 |
The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated | Expected Activity | ||||
Activity Cost Pools | Activity Measures | Overhead Cost | Product J0 | Product Q9 | Total |
Labor-related | DLHs | $234,168 | 2,500 | 6,300 | 8,800 |
Machine setups | setups | 13,800 | 300 | 200 | 500 |
General factory | MHs | 112,423 | 3,100 | 3,000 | 6,100 |
$360,391 |
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