Accurso,Inc. ,manufactures and sells two products: Product J9 and Product S5.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 $22.50 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 J9 under activity-based costing is closest to:
A)$706.26 per unit
B)$777.96 per unit
C)$492.80 per unit
D)$544.57 per unit

Question

Accurso,Inc. ,manufactures and sells two products: Product J9 and Product S5.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 $22.50 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 J9 under activity-based costing is closest to:
A)$706.26 per unit 
B)$777.96 per unit 
C)$492.80 per unit 
D)$544.57 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_337d_4612_908b_7ff4c647d6b5_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_337d_6d23_908b_5d895e23806e_TB2461_00