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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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
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