Bobzien, Incorporated, manufactures and sells two products: Product B7 and Product Z5. Data concerning the expected production of each product andthe expected total direct labor-hours (DLHS) required to produce that output appear below:Product B7Product Z5Total direct labor-hoursExpected Hours PerProduction300800Activity Cost PoolsLabor-relatedProduction ordersOrder sizeDirectLabor-ActivityMeasuresDLHSordersMHsThe direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5.EstimatedOverheadCostUnit5.03.0The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:$ 39,58526,884462,768$529,237TotalDirectLabor-Hours1,5002,4003,900Expected ActivityProduct B7 Product Z51,5002,4005006004,6004,700Total3,9001,1009,300The activity rate for the Production Orders activity cost pool under activity-based costing is closest to: O$98.46 per order$56.91 per order$24.44 per order$100.60 per order

Activity-based costing (ABC): It is a costing method in which overhead and indirect costs are…

Bobzien, Incorporated, manufactures and sells two products: Product B7 and Product Z5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product B7 Product Z5 Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size Expected Hours Per Production 300 800 Activity Measures DLHs orders MHS Direct Labor- Estimated Overhead Cost The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity $ 39,585 26,884 462,768 $ 529,237 Unit 5.0 3.0 Total Direct Labor- Hours 1,500 2,400 3,900 Product B7 Product Z5 2,400 600 4,700 1,500 500 4,600 Total 3,900 1,100 9,300 The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:

Bobzien, Incorporated, manufactures and sells two products: Product B7 and Product Z5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product B7 Product Z5 Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size Expected Hours Per Production 300 800 Activity Measures DLHs orders MHS Direct Labor- Estimated Overhead Cost The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity $ 39,585 26,884 462,768 $ 529,237 Unit 5.0 3.0 Total Direct Labor- Hours 1,500 2,400 3,900 Product B7 Product Z5 2,400 600 4,700 1,500 500 4,600 Total 3,900 1,100 9,300 The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:

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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Beerfield Company manufactures product M in its factory. Production of M requires 2 pounds of material P, costing $10 per pound and 0.5 hour of direct labor costing, $16 per hour. The variable overhead rate is $14 per direct labor hour, and the fixed overhead rate is $18 per direct labor hour. What is the standard product cost for product M? Direct material Answer Direct labor Answer Variable overhead Answer Fixed overhead Answer Standard product cost per unit Answer
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0 Ellerie, Incorporated, manufactures and sells two products Product G8 and Product 00. Data concerning the expected production of each product and the expected total direct labor hours (DLH) required to produce that output appear below: Activity Cost Pools Labor-related Expected Hours Per Production Unit 710 5.1 310 2.1 Product CB Product 00 Total direct labor-hours The direct labor rate is $22.20 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit $114.10 $ 114.50 Machine setups Order sice Direct Labor- Product CB Product 00 The company is considering adopting an activity based costing system with the following activity cost pools, activity measures, and expected activity Estimated Overhead Multiple Choice Activity Measures Total Direct Labor- Hours 3,621 651 4,272 Cost $56,055 54,890 366,008 $ 476,953 Which of the following statements concerning the unit product cost of Product GB is true? (Round your intermediate calculations…
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