Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below Expected Production Direct Labor-Hours Total Direct Per Unit Labor-Hours Product F9 100 10.0 1,000 Product U4 1,000 5.0 5,000 Total direct labor-hours 6,000 The direct labor rate is $28.90 per DLH. The direct materials cost per unit is $202 for Product F9 and $258 for Product U4. 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 Cost Product F9 Product U4 Total DLHS 35,400 1,000 5,000 6,000 Production orders orders 56,200 600 1,000 1,600 Order size MHs 114,530 3,200 3,700 6,900 $ 206,130 The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your Intermedlete calculetions to 2 decimel pleces.) Multiple Choice O $56200 per unit $126.05 per unit $171.78 per unit $281.00 per unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below
Expected Direct Labor-Hours
Production
Total Direct
Per Unit
Labor-Hours
Product F9
100
10.0
1,000
Product U4
1,000
5.0
5,000
Total direct labor-hours
6,000
The direct labor rate is $28.90 per DLH. The direct materlals cost per unit is $202 for Product F9 and $258 for Product U4.
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 F9
Product U4
Total
Labor-related
DLHS
%24
$ 35,400
1,000
5,000
6,000
Production orders
orders
56, 200
114,530
600
1,000
1,600
Order size
MHs
3,200
3,700
6,900
$ 206,130
The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your Intermedlete calculations to 2 decimal pleces.)
Multiple Choice
$562.00 per unit
$126.05 per unit
$171.78 per unit
$281.00 per unit
Transcribed Image Text:Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below Expected Direct Labor-Hours Production Total Direct Per Unit Labor-Hours Product F9 100 10.0 1,000 Product U4 1,000 5.0 5,000 Total direct labor-hours 6,000 The direct labor rate is $28.90 per DLH. The direct materlals cost per unit is $202 for Product F9 and $258 for Product U4. 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 F9 Product U4 Total Labor-related DLHS %24 $ 35,400 1,000 5,000 6,000 Production orders orders 56, 200 114,530 600 1,000 1,600 Order size MHs 3,200 3,700 6,900 $ 206,130 The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your Intermedlete calculations to 2 decimal pleces.) Multiple Choice $562.00 per unit $126.05 per unit $171.78 per unit $281.00 per unit
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