Masiclat,Inc. ,manufactures and sells two products: Product K2 and Product O8.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 $21.10 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 K2 under activity-based costing is closest to:
A)$1,189.03 per unit
B)$1,038.84 per unit
C)$838.49 per unit
D)$1,164.76 per unit

Question

Masiclat,Inc. ,manufactures and sells two products: Product K2 and Product O8.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 $21.10 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 K2 under activity-based costing is closest to:
A)$1,189.03 per unit 
B)$1,038.84 per unit 
C)$838.49 per unit 
D)$1,164.76 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_3367_e9f9_908b_73622660de35_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_3367_e9fa_908b_1fee22779950_TB2461_00 Computation of unit product costs under activity-based costing.
 11eaa3fe_3368_110b_908b_13b1f31a8184_TB2461_00