Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected ProductionDirect Labor-Hours Per UnitTotal Direct Labor-HoursProduct W24006.02,400Product P86004.02,400Total direct labor-hours 4,800The direct labor rate is $29.10 per DLH. The direct materials cost per unit is $195.60 for Product W2 and $132.30 for Product P8.The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct W2Product
P8TotalLabor-relatedDLHs$210,5762,4002,4004,800Production ordersorders 17,738400300700Order sizeMHs 273,4303,8003,6007,400 $501,744 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product W2 would be closest to: (Round your intermediate calculations to 2 decimal places.)
A. $263.22 per unit
B. $627.18 per unit
C. $221.70 per unit
D. $152.04 per unit
Answer: B
You might also like to view...
An asset was purchased for $120,000 on January 1, Year 1 and originally estimated to have a useful life of 10years with a residual value of $10,000 . At the beginning of the third year, it was determined that the remaininguseful life of the asset was only 4 years with a residual value of $2,000 . Calculate the third-year depreciationexpense using the revised amounts and straight-line method
a. $24,000 b. $25,000 c. $11,000 d. $24,500
In the 1980s, the United States suffered one of its worst financial crises when ____ began to fail in large numbers.
A. commercial banks B. stock brokers C. money market mutual funds D. savings and loan institutions
When the seller breaches, the risk of loss often passes to the buyer sooner than it otherwise
would. Indicate whether the statement is true or false
A company's culture has little impact on whether projects are successfully implemented
Indicate whether the statement is true or false