Mahaley, Inc., manufactures and sells two products: Product Q9 and Product F0.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $21.80 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The unit product cost of Product F0 under activity-based costing is closest to:
A)$720.13 per unit
B)$674.82 per unit
C)$449.51 per unit
D)$656.88 per unit

Question

Mahaley, Inc., manufactures and sells two products: Product Q9 and Product F0.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:  The direct labor rate is $21.80 per DLH.The direct materials cost per unit for each product is given below:  The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The unit product cost of Product F0 under activity-based costing is closest to:
A)$720.13 per unit 
B)$674.82 per unit 
C)$449.51 per unit 
D)$656.88 per unit

Quizplus · Accepted Answer

Computation of activity rates: 11ea7998_5e91_e1e5_911b_a7df08d0c25b_TB2627_00_TB2627_00 Computation of the overhead cost per unit under activity-based costing. 11ea7998_5e91_e1e6_911b_e710f18e6166_TB2627_00_TB2627_00 Computation of unit product costs under activity-based costing. 11ea7998_5e92_08f7_911b_d945594d1028_TB2627_00_TB2627_00