Jaure, Inc., manufactures and sells two products: Product H4 and Product I3. 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 $29.40 per DLH. The direct materials cost per unit is $244.70 for Product H4 and $206.20 for Product I3.
The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Required:
a. Compute the activity rates under the activity-based costing system.
b. Determine how much overhead would be assigned to each product under the activity-based costing system.
c. Determine the unit product cost of each product under the activity-based costing method.

Question

Jaure, Inc., manufactures and sells two products: Product H4 and Product I3. 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 $29.40 per DLH. The direct materials cost per unit is $244.70 for Product H4 and $206.20 for Product I3.
The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  Required:
a. Compute the activity rates under the activity-based costing system.
b. Determine how much overhead would be assigned to each product under the activity-based costing system.
c. Determine the unit product cost of each product under the activity-based costing method.

Quizplus · Accepted Answer

The Answer of Jaure, Inc., manufactures and sells two products: Product H4 and Product I3. 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 $29.40 per DLH. The direct materials cost per unit is $244.70 for Product H4 and $206.20 for Product I3.
The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  Required:
a. Compute the activity rates under the activity-based costing system.
b. Determine how much overhead would be assigned to each product under the activity-based costing system.
c. Determine the unit product cost of each product under the activity-based costing method.