Gradwell, Inc., manufactures and sells two products: Product K8 and Product I4. 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-HoursProduct K8300 5.0 1,500 Product I4900 3.0 2,700 Total direct labor-hours 4,200 The direct labor rate is $17.20 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per UnitProduct K8$150.20 Product I4$243.70 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead
CostExpected Activity???Product K8Product I4TotalLabor-relatedDLHs$176,064 1,5002,7004,200Machine setupssetups 71,290 4006001,000Order sizeMHs 121,396 4,3004,6008,900 $368,750 The overhead applied to each unit of Product I4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $69.72 per unit
B. $243.00 per unit
C. $307.29 per unit
D. $263.40 per unit
Answer: B
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Which of the following statements is true about overhead?
A) Overhead costs are not incurred uniformly throughout the year. B) Overhead costs have a definite, identifiable relationship with units produced. C) Low production in one month would give rise to low unit overhead costs. D) All of these are true. E) None of these is true.
Which of the following conditions would be likely to emphasize the role of the leader?
a. A workplace dominated by inexperienced but motivated young employees b. A workplace that encourages empowerment and active participation of employees c. A workplace that relies primarily on professional contract employees d. A workplace of highly skilled and self-directed employees
A chronological history of the chain of title and encumbrances affecting a parcel of real property
is known as: A) An abstract of title. B) A certificate of title. C) A Torrens certificate. D) Title insurance.
The strategic relevance of performance appraisals refers to the extent to which
A. standards relate to the overall objectives of the organization. B. standards capture the entire range of an employee's responsibilities. C. individuals tend to maintain a certain level of performance over time. D. factors outside the employee's control can influence performance.