Hesson, Inc., manufactures and sells two products Product F3 and Product FO. Data conceming the expected production of each product and the expected total direct labor-hours (DLHS) required t produce that output appear below Product 3 Product FO Total direct labor-hours Product F3 Product Fo The direct labor rate is $16.30 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit $261.40 $187.50 Activity Cost Pools Labor-related Machine setups Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Expected Production 300 200 O O O Direct Labor- Hours Per Unit 6.0 5.0 Activity Measures DLH setups MH6 Multiple Choice O Estimated Overhead Cost $110,964 33,005 486,720 $630,689 The unit product cost of Product F3 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places) Total Direct Labor-Hours 1,800 1,000 2,800 Expected Activity Product F3 Product Fo 1,800 300 3,100 $1,197.44 per unit 1,000 200 2,900 $1,620.58 per unit $1,501.23 per unit $1,710.70 per unit Total 2,800 500 6,000

Hesson, Inc., manufactures and sells two products Product F3 and Product FO. Data conceming the expected production of each product and the expected total direct labor-hours (DLHS) required t produce that output appear below Product 3 Product FO Total direct labor-hours Product F3 Product Fo The direct labor rate is $16.30 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit $261.40 $187.50 Activity Cost Pools Labor-related Machine setups Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Expected Production 300 200 O O O Direct Labor- Hours Per Unit 6.0 5.0 Activity Measures DLH setups MH6 Multiple Choice O Estimated Overhead Cost $110,964 33,005 486,720 $630,689 The unit product cost of Product F3 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places) Total Direct Labor-Hours 1,800 1,000 2,800 Expected Activity Product F3 Product Fo 1,800 300 3,100 $1,197.44 per unit 1,000 200 2,900 $1,620.58 per unit $1,501.23 per unit $1,710.70 per unit Total 2,800 500 6,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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