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Faz, Inc., manufactures and sells two products: Product XO and Product W7 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 1,000 Total Direct Per Unit Labor-Hours Product X0 5,000 Product W7 450 2 900 Total direct labor-hours 5,900 The direct labor rate is $24.60 per DLH. The direct materials cost per unit is $149.50 for Product XO and $131 for Product W7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activíty Activity Overhead Activity Cost Pools Measures Cost Product X0 Product W7 Total $ 277,078 19,448 244,674 5,000 5,900 1,300 8,200 Labor-related DLHS 900 Production orders orders 550 750 Order size MHs 4,050 4,150 $ 541,200 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product XO would be closest to: (Round your intermediate calculation to 2 decimal pleces.) Multiple Choice $234.81 per unit

Faz, Inc., manufactures and sells two products: Product XO and Product W7 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 1,000 Total Direct Per Unit Labor-Hours Product X0 5,000 Product W7 450 2 900 Total direct labor-hours 5,900 The direct labor rate is $24.60 per DLH. The direct materials cost per unit is $149.50 for Product XO and $131 for Product W7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activíty Activity Overhead Activity Cost Pools Measures Cost Product X0 Product W7 Total $ 277,078 19,448 244,674 5,000 5,900 1,300 8,200 Labor-related DLHS 900 Production orders orders 550 750 Order size MHs 4,050 4,150 $ 541,200 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product XO would be closest to: (Round your intermediate calculation to 2 decimal pleces.) Multiple Choice $234.81 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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Faz, Inc., manufactures and sells two products: Product XO and Product W7, Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output 14 appear below: Expected Direct Labor-Hours Total Direct Production Per Unit Labor-Hours 1 Product X0 points 1,000 5,000 Product W7 450 900 Total direct labor-hours 5,900 The direct labor rate is $24.60 per DLH. The direct materials cost per unit is $149.50 for Product X0 and $131 for Product W7. 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 xe Product W7 Total Labor-related DLHS $ 277,078 900 5,900 5,000 550 Production orders orders 19,448 244,674 $ 541,200 750 1,300 Order size MHs 4,050 4,150 8,200 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product X0 would be closest to: (Round your intermediate calculation to 2 decimal places.) Multiple Choice $234.81 per unit
Transcribed Image Text:Faz, Inc., manufactures and sells two products: Product XO and Product W7, Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output 14 appear below: Expected Direct Labor-Hours Total Direct Production Per Unit Labor-Hours 1 Product X0 points 1,000 5,000 Product W7 450 900 Total direct labor-hours 5,900 The direct labor rate is $24.60 per DLH. The direct materials cost per unit is $149.50 for Product X0 and $131 for Product W7. 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 xe Product W7 Total Labor-related DLHS $ 277,078 900 5,900 5,000 550 Production orders orders 19,448 244,674 $ 541,200 750 1,300 Order size MHs 4,050 4,150 8,200 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product X0 would be closest to: (Round your intermediate calculation to 2 decimal places.) Multiple Choice $234.81 per unit
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