Punches,Inc. ,manufactures and sells two products: Product H7 and Product Y2.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 $17.80 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 overhead applied to each unit of Product Y2 under activity-based costing is closest to:
A)$771.87 per unit
B)$505.66 per unit
C)$735.12 per unit
D)$284.55 per unit

Question

Punches,Inc. ,manufactures and sells two products: Product H7 and Product Y2.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 $17.80 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 overhead applied to each unit of Product Y2 under activity-based costing is closest to:
A)$771.87 per unit 
B)$505.66 per unit 
C)$735.12 per unit 
D)$284.55 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_336e_c6f8_908b_c32237f927e7_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_336e_c6f9_908b_bb0c07139f0e_TB2461_00