Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and output appear below: Expected Direct Labor-Hours Total Direct Production Per Unit Labor-Hours Product F9 400 8.0 3,200 Product U4 800 4.0 3,200 Total direct labor-hours 6,400 The direct labor rate is $24.20 per DLH. The direct materials cost per unit is $223 for Product F9 and $287 for Product U4. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected a Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product F9 Product U4 Total DLHS %24 32,400 3,200 3,200 6,400 orders 1,300 51,440 104,830 $ 188,670 Production orders 500 800 Order size MHs 3,500 3,100 6,600 The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decime Multiple Choice O S128.60 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
Production
Direct Labor-Hours
Total Direct
Per Unit
Labor-Hours
1.
Product F9
400
8.0
3,200
points
Product U4
800
4.0
3,200
Total direct labor-hours
6,400
The direct labor rate is $24.20 per DLH. The direct materials cost per unit is $223 for Product F9 and $287 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
6,400
1,300
6,600
Labor-related
DLHS
%24
32,400
3,200
3,200
orders
51,440
104,830
Production orders
500
800
Order size
MHs
3,500
3,100
$ 188,670
The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$128.60 per unit
Transcribed Image Text:13 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 1. Product F9 400 8.0 3,200 points Product U4 800 4.0 3,200 Total direct labor-hours 6,400 The direct labor rate is $24.20 per DLH. The direct materials cost per unit is $223 for Product F9 and $287 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 6,400 1,300 6,600 Labor-related DLHS %24 32,400 3,200 3,200 orders 51,440 104,830 Production orders 500 800 Order size MHs 3,500 3,100 $ 188,670 The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $128.60 per unit
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