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 Direct Labor-Hours Total Direct Production Per Unit Labor-Hours Product W2 400 2,000 Product P8 500 4 2,000 Total direct labor-hours 4,000 The direct labor rate is $45.10 per DLH. The direct materials cost per unit is $211.60 for Product W2 and $148.30 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 Overhead Total Activity Cost Pools Labor-related Production orders Measures Cost Product W2 Product P8 $ 226,576 19,338 254,086 $ 500,e00 2,e00 460 4,000 1,020 7,720 DLHS 2,000 orders 560 MHs 3,960 3,760 Order size The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $444.93 per unit
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 Direct Labor-Hours Total Direct Production Per Unit Labor-Hours Product W2 400 2,000 Product P8 500 4 2,000 Total direct labor-hours 4,000 The direct labor rate is $45.10 per DLH. The direct materials cost per unit is $211.60 for Product W2 and $148.30 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 Overhead Total Activity Cost Pools Labor-related Production orders Measures Cost Product W2 Product P8 $ 226,576 19,338 254,086 $ 500,e00 2,e00 460 4,000 1,020 7,720 DLHS 2,000 orders 560 MHs 3,960 3,760 Order size The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $444.93 per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
18
![18
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 Direct Labor-Hours
Production
Total Direct
Per Unit
Labor-Hours
Product W2
400
5
2,000
polnts
Product P8
500
4.
2,000
Total direct labor-hours
4,000
The direct labor rate is $45.10 per DLH. The direct materials cost per unit is $211.60 for Product W2 and $148.30 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
Overhead
Product W2 Product P8
2,000
Measures
Total
Activity Cost Pools
Cost
$ 226,576
4,000
2,000
560
Labor-related
DLHS
orders
19,338
460
1,020
Production orders
MHs
254,086
3,960
3,760
7,720
Order size
$ 500,000
The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$444.93 per unit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9fb36c2-baa2-4e3c-8a83-bfde288d2a38%2F858dba16-f296-4faf-9e04-6de66561dd77%2F2ar9jw6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:18
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 Direct Labor-Hours
Production
Total Direct
Per Unit
Labor-Hours
Product W2
400
5
2,000
polnts
Product P8
500
4.
2,000
Total direct labor-hours
4,000
The direct labor rate is $45.10 per DLH. The direct materials cost per unit is $211.60 for Product W2 and $148.30 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
Overhead
Product W2 Product P8
2,000
Measures
Total
Activity Cost Pools
Cost
$ 226,576
4,000
2,000
560
Labor-related
DLHS
orders
19,338
460
1,020
Production orders
MHs
254,086
3,960
3,760
7,720
Order size
$ 500,000
The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$444.93 per unit
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education