Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. 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 Per Unit Total Direct Labor-Hours Product W2 400 4 1,600 Product P8 800 2 1,600 Total direct labor-hours     3,200     The direct labor rate is $31.10 per DLH. The direct materials cost per unit is $197.60 for Product W2 and $134.30 for Product P8.   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 Cost Pools Activity Measures Overhead Cost Product W2 Product P8 Total Labor-related DLHs $ 212,576 1,600 1,600 3,200 Production orders orders   17,938 420 320 740 Order size MHs   236,686 3,820 3,620 7,440     $ 467,200           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 W2 would be closest to:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. 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 Per Unit Total Direct Labor-Hours
Product W2 400 4 1,600
Product P8 800 2 1,600
Total direct labor-hours     3,200
 

 

The direct labor rate is $31.10 per DLH. The direct materials cost per unit is $197.60 for Product W2 and $134.30 for Product P8.

 

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 Cost Pools Activity Measures Overhead Cost Product W2 Product P8 Total
Labor-related DLHs $ 212,576 1,600 1,600 3,200
Production orders orders   17,938 420 320 740
Order size MHs   236,686 3,820 3,620 7,440
    $ 467,200      
 

 

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 W2 would be closest to:

 

 

 
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