Fleurant, Incorporated, 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: Product W2 Product P8 Total direct labor-hours Expected Production 400 800 Activity Cost Pools Labor-related Production orders Order size Direct Labor- Hours Per Unit 8 4 The direct labor rate is $43.10 per DLH. The direct materials cost per unit is $209.60 for Product W2 and $146.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Measures DLHS orders MHS Estimated Overhead Cost $ 224,576 19,138 249,086 $ 492,800 Total Direct Labor-Hours 3,200 3,200 6,400 Product W2 Product P8 3,200 540 3,940 3,200 440 3,740 Total 6,400 980 7,680 The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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O
O
$316.09 per unit
$626.52 per unit
$616.00 per unit
$319.44 per unit
Transcribed Image Text:Multiple Choice O O $316.09 per unit $626.52 per unit $616.00 per unit $319.44 per unit
Fleurant, Incorporated, 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:
Product W2
Product P8
Total direct labor-hours
Expected
Production
400
800
Activity Cost Pools
Labor-related
Production orders
Order size
Direct Labor-
Hours Per Unit
8
4
The direct labor rate is $43.10 per DLH. The direct materials cost per unit is $209.60 for Product W2 and $146.30 for Product P8.
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Expected Activity
Estimated
Overhead Cost
Activity
Measures
DLHS
orders
MHS
$ 224,576
19, 138
249,086
$ 492,800
The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Total Direct
Labor-Hours
3,200
3,200
6,400
Product W2 Product P8
3,200
540
3,940
3,200
440
3,740
Total
6,400
980
7,680
Transcribed Image Text:Fleurant, Incorporated, 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: Product W2 Product P8 Total direct labor-hours Expected Production 400 800 Activity Cost Pools Labor-related Production orders Order size Direct Labor- Hours Per Unit 8 4 The direct labor rate is $43.10 per DLH. The direct materials cost per unit is $209.60 for Product W2 and $146.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Overhead Cost Activity Measures DLHS orders MHS $ 224,576 19, 138 249,086 $ 492,800 The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Total Direct Labor-Hours 3,200 3,200 6,400 Product W2 Product P8 3,200 540 3,940 3,200 440 3,740 Total 6,400 980 7,680
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