16 Adelberg Company has two products A and B. The annual production and sales of Product Ais 2350 unts and of Product B is 1750 unts. The company has tradtionally used direct labor hours as the basn forapplying all manufacturing overhead to products. Product A requires 04 direct labor hours per unit and Product Brequires 07 direct laborhours per unt The total estmated overhead for next pernod s St06.000The company is considering switching to an activity-based costing system for the purpose of computing unt product costs for external reports The new acvity based costing system would have three overheadactivity cost pools-Activity 1 Activity 2, and Order Sue wth estimated ovehead costs and expected activity as followsEstinatedExpected ActivityOverheadActivity Cost PoolsActivity 1Activity 2Order SizeCostsProduct AProduct 8Total32,75418,6561,65e2,3501,2508502,90020054,590$ 106,0009401,2252,165Total(Note The Order Sze activity cost pool's costs are allocated on the basis of drectiaborhours)The overhead cost per unit of Product B under the tradtional costing systems closest to (Round your intermediete calculations to 2 decimal places)Mulsple Choice$1985$5.83$794O O

Given data: Product A = 2350 units Product B = 1750 units Product A requires 0.4 DLH/unit Product B…

Adeberg Company has two products A and B The annual production and sales o Phoduct Ai 2.350 uns and of Product Bis 750 unts The company has tradtionally used drect labor hours applying all manudactuing overhead to products Product A requres 04 dect abor hours per unt and Productrequees 07 drect labor hours per und The ttal estted ovetead for ned penod a Stc0 The company is consideing switching to an activity based costing ystem activity cost pools-Activity t Actvity 2, and Order Sue wth estimated ovehead cot and expected actvtyaows the bas for purpose of computing unt product costs for extemal reports The new actvtybaed cotng ystmwoud have the Estinated Expected Activity Overhead Costs Activity Cost Pools Activity 1 Activity 2 Product A Product & Total $ 32,754 18,656 54,5 $ 106,000 1,6se 2,se 1,250 2,00 200 2,145 ase Order Size 1,225 Total Note The Order Sue activity cost poos costs e alloced on the bas of rectbohos) The overhead cost per unt of Productunder the adtional costing sys doseround 2 decimal pleces Mule Choce $754

Adeberg Company has two products A and B The annual production and sales o Phoduct Ai 2.350 uns and of Product Bis 750 unts The company has tradtionally used drect labor hours applying all manudactuing overhead to products Product A requres 04 dect abor hours per unt and Productrequees 07 drect labor hours per und The ttal estted ovetead for ned penod a Stc0 The company is consideing switching to an activity based costing ystem activity cost pools-Activity t Actvity 2, and Order Sue wth estimated ovehead cot and expected actvtyaows the bas for purpose of computing unt product costs for extemal reports The new actvtybaed cotng ystmwoud have the Estinated Expected Activity Overhead Costs Activity Cost Pools Activity 1 Activity 2 Product A Product & Total $ 32,754 18,656 54,5 $ 106,000 1,6se 2,se 1,250 2,00 200 2,145 ase Order Size 1,225 Total Note The Order Sue activity cost poos costs e alloced on the bas of rectbohos) The overhead cost per unt of Productunder the adtional costing sys doseround 2 decimal pleces Mule Choce $754

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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