AZ-71880 company makes and sells two products: Product W608 and Product Z525. The annual production and sales of Product W608 is 900 units and of Product Z525 is 600 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 Direct Labor-Hours Expected Production Labor- Per Unit Hours Product W608 900 6.0 5,400 Product 2525 600 3.0 1,800 7,200 Total direct labor-hours The direct labor rate is $26.00 per DLH. The direct materials cost per unit is $226.00 for Product W608 and $214.00 for Product Z525. The AZ-71880 company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity. Estimated Expected Activity Product Activity Overhead Measures Product Activity Cost Pools Labor-related Cost W608 2525 Total $ 40,736 65,970 433,175 $539,881 5,400 1,000 3,100 1,800 600 7,200 1,600 7,100 DLHS Production orders orders Order size MHs 4,000 The unit product cost of Product W608 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $289.92 per unit $515.92 per unit $89792 per unit $671.92 per unit
AZ-71880 company makes and sells two products: Product W608 and Product Z525. The annual production and sales of Product W608 is 900 units and of Product Z525 is 600 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 Direct Labor-Hours Expected Production Labor- Per Unit Hours Product W608 900 6.0 5,400 Product 2525 600 3.0 1,800 7,200 Total direct labor-hours The direct labor rate is $26.00 per DLH. The direct materials cost per unit is $226.00 for Product W608 and $214.00 for Product Z525. The AZ-71880 company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity. Estimated Expected Activity Product Activity Overhead Measures Product Activity Cost Pools Labor-related Cost W608 2525 Total $ 40,736 65,970 433,175 $539,881 5,400 1,000 3,100 1,800 600 7,200 1,600 7,100 DLHS Production orders orders Order size MHs 4,000 The unit product cost of Product W608 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $289.92 per unit $515.92 per unit $89792 per unit $671.92 per unit
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:AZ-71880 company makes and sells two products: Product W608 and Product Z525. The annual production and sales of Product W608 is 900 units and of Product Z525 is 600 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
Direct
Labor-Hours
Expected
Labor-
Per Unit
Production
Hours
Product W608
900
6.0
5,400
1,800
Product Z525
600
3.0
Total direct labor-hours
7,200
The direct labor rate is $26.00 per DLH. The direct materials cost per unit is $226.00 for Product W608 and $214.00 for Product Z525.
The AZ-71880 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
Product
Product
Activity Cost Pools
Measures
Cost
W608
Z525
Total
Labor-related
DLHS
$ 40,736
5,400
1,000
1,800
7,200
1,600
orders
65,970
433,175
Production orders
600
Order size
MHs
3,100
4,000
7,100
$539,881
The unit product cost of Product W608 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$289.92 per unit
$515.92 per unit
$897.92 per unit
$671.92 per unit
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