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

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Hesson, Inc., manufactures and sells two products: Product F3 and Product FO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to
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:
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 Activity
Expected
Production
300
200
O
O
Direct Materials
Cost per Unit
$261.40
$187.50
O
Multiple Choice
O
Direct Labor-
Hours Per Unit
6.0
5.0
Activity
Measures
DLHS
setups
MRS
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-Houre
1,800
1,000
2,800
Product F3 Product FO
1,800
1,000
300
200
3,100
2,900
$1,197.44 per unit
$1,620.58 per unit
$1,501.23 per unit
$1,710.70 per unit
Total
2,800
500
6,000
Transcribed Image Text:Hesson, Inc., manufactures and sells two products: Product F3 and Product FO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to 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: 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 Activity Expected Production 300 200 O O Direct Materials Cost per Unit $261.40 $187.50 O Multiple Choice O Direct Labor- Hours Per Unit 6.0 5.0 Activity Measures DLHS setups MRS 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-Houre 1,800 1,000 2,800 Product F3 Product FO 1,800 1,000 300 200 3,100 2,900 $1,197.44 per unit $1,620.58 per unit $1,501.23 per unit $1,710.70 per unit Total 2,800 500 6,000
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