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Amtson, Inc., manufactures and sells two products: Product R3 and Product NO. The annual production and sales of Product of R3 Is 1,200 units and of Product NO is 200 units. Data concerning the expected production of each product and the expected totar direct labor-hours (DLHS) required to produce that output appear below Total Direct Direct Labor-Hours Expected Production Labor- Per Unit Hours Product R3 1,200 4.0 4,800 Product Ne 200 2.0 400 Total direct labor-hours 5,200 The direct labor rate is $26.20 per DLH. The direct materials cost per unit is $228.00 for Product R3 and $300.00 for Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Product R3 Product NO Cost Total DLHS $ 40,536 4,800 400 5,200 Production orders orders 60,270 1,300 200 1,500 Order size MHs 432,975 3,900 3,500 7,400 $ 533,781 The unit product cost of Product R3 under activity-based costing is closest to: (Round your Intermedlate calculations to 2 decimel pleces.) Multiple Choice $492.89 per unit O $264 89 per unit $59769 per unit

Amtson, Inc., manufactures and sells two products: Product R3 and Product NO. The annual production and sales of Product of R3 Is 1,200 units and of Product NO is 200 units. Data concerning the expected production of each product and the expected totar direct labor-hours (DLHS) required to produce that output appear below Total Direct Direct Labor-Hours Expected Production Labor- Per Unit Hours Product R3 1,200 4.0 4,800 Product Ne 200 2.0 400 Total direct labor-hours 5,200 The direct labor rate is $26.20 per DLH. The direct materials cost per unit is $228.00 for Product R3 and $300.00 for Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Product R3 Product NO Cost Total DLHS $ 40,536 4,800 400 5,200 Production orders orders 60,270 1,300 200 1,500 Order size MHs 432,975 3,900 3,500 7,400 $ 533,781 The unit product cost of Product R3 under activity-based costing is closest to: (Round your Intermedlate calculations to 2 decimel pleces.) Multiple Choice $492.89 per unit O $264 89 per unit $59769 per unit

FINANCIAL ACCOUNTING
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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Arntson, Inc., manufactures and sells two products: Product R3 and Product NO. The annual production and sales of Product of R3 Is 1.200 units and of Product NO Is 200 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Total Direct Labor-Hours Direct Expected Production Labor- Per Unit Hours Product R3 1, 200 4.0 4,800 Product NO 200 2.0 400 Total direct labor-hours 5,200 The direct labor rate is $26.20 per DLH. The direct materlais cost per unit is $228.00 for Product R3 and $300.00 for Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product R3 Product NO Total Labor-related DLHS 40,536 4,800 400 5,200 Production orders orders 60,270 1,300 200 1,500 Order size 432,975 $ 533,781 MHs 3,900 3,500 7,400 The unit product cost of Product R3 under activity-based costing Is closest to: (Round your Intermedlate calculations to 2 decimal places.) Multiple Choice $492.89 per unit $264.89 per unit $597.69 per unit
Transcribed Image Text:Arntson, Inc., manufactures and sells two products: Product R3 and Product NO. The annual production and sales of Product of R3 Is 1.200 units and of Product NO Is 200 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Total Direct Labor-Hours Direct Expected Production Labor- Per Unit Hours Product R3 1, 200 4.0 4,800 Product NO 200 2.0 400 Total direct labor-hours 5,200 The direct labor rate is $26.20 per DLH. The direct materlais cost per unit is $228.00 for Product R3 and $300.00 for Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product R3 Product NO Total Labor-related DLHS 40,536 4,800 400 5,200 Production orders orders 60,270 1,300 200 1,500 Order size 432,975 $ 533,781 MHs 3,900 3,500 7,400 The unit product cost of Product R3 under activity-based costing Is closest to: (Round your Intermedlate calculations to 2 decimal places.) Multiple Choice $492.89 per unit $264.89 per unit $597.69 per unit
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