Mahaley, Inc, manufactures and sebs two products Product and Product FO. Data concening the expected production of each product and the espected total direct labor hours DH requred to produce tha output appear below Direct Total Labor Hours Per Direct Expected Production Laber Unit Hours Product 9,409 7,469 16,878 970 9.7 Product 10 970 7.7 Total direct labor-hours
Mahaley, Inc, manufactures and sebs two products Product and Product FO. Data concening the expected production of each product and the espected total direct labor hours DH requred to produce tha output appear below Direct Total Labor Hours Per Direct Expected Production Laber Unit Hours Product 9,409 7,469 16,878 970 9.7 Product 10 970 7.7 Total direct labor-hours
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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![Mahaley, Inc, manufactures and sels two products Product Q9 and Product FO. Data concerming the expected production of each product and the expected total direct labor hours DLHg required to produce that
output appear below
Direct
Total
Labor
Direct
Labor
Expected Hours Per
Production
Unit
Hours
Product
Product FO
9,409
7,469
970
9.7
970
7.7
Total direct labor-hours
16,878
The direct labor rate is $2350 per DLH. The direct materials cost per unit for each product is given below
Direct
Materials
Cost per Unit
$176.60
Product 99
Product Fe
$148.40
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures and expected activity
Expected Activity
Estinated
Overhead
Activity
Product 9 Product FO
9,409
1,150
4,800
Total
Activity Cost Pools
Labor related
Machine setups
Measures
Cost
DLHS
$ 396,680
7,469
16,878
1,es0
4,600
setups
52,330
2,200
293,200
9,400
Order size
$ 742,210
The unit product cost of Product FO under activity-based costing is closest to (Round your intermediate celculetions to 2 decimal pleces )](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9fb36c2-baa2-4e3c-8a83-bfde288d2a38%2F7a51a457-c3bb-4e6e-a581-849595a566be%2Fscg6kw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mahaley, Inc, manufactures and sels two products Product Q9 and Product FO. Data concerming the expected production of each product and the expected total direct labor hours DLHg required to produce that
output appear below
Direct
Total
Labor
Direct
Labor
Expected Hours Per
Production
Unit
Hours
Product
Product FO
9,409
7,469
970
9.7
970
7.7
Total direct labor-hours
16,878
The direct labor rate is $2350 per DLH. The direct materials cost per unit for each product is given below
Direct
Materials
Cost per Unit
$176.60
Product 99
Product Fe
$148.40
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures and expected activity
Expected Activity
Estinated
Overhead
Activity
Product 9 Product FO
9,409
1,150
4,800
Total
Activity Cost Pools
Labor related
Machine setups
Measures
Cost
DLHS
$ 396,680
7,469
16,878
1,es0
4,600
setups
52,330
2,200
293,200
9,400
Order size
$ 742,210
The unit product cost of Product FO under activity-based costing is closest to (Round your intermediate celculetions to 2 decimal pleces )
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