O$2,205.42 per unit$553.68 per unit$452.28 per unit$159.12 per unit Mckenny, Incorporated, manufactures and sells two products: Product P9 and Product X2. Data concerning the expected production of each product andthe expected total direct labor-hours (DLHs) required to produce that output appear below:Product P9Product X2Total direct labor-hoursDirectLabor-Expected Hours PerProduction Unit2006.01005.0Activity Cost PoolsLabor-relatedProduction ordersOrder sizeThe direct labor rate is $28.20 per DLH. The direct materials cost per unit is $140.60 for Product P9 and $107.50 for Product X2.The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:ActivityMeasuresDLHsordersMHSTotalDirectLabor-Hours1,2005001,700EstimatedOverheadCost$ 45,084119,964459,818$ 624,866Expected ActivityProduct P9 Product X21,2006003,2005007002,900Total1,7001,3006,100If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit ofProduct P9 would be closest to: (Round your intermediate calculations to 2 decimal places.)

Overhead refers to the ongoing business expenses not directly allocated to creating a product or…

Mckenny, Incorporated, manufactures and sells two products: Product P9 and Product X2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product P9 Product X2 Total direct labor-hours Direct Labor- Expected Hours Per Production 200 100 Activity Cost Pools. Labor-related Production orders Order size The direct labor rate is $28.20 per DLH. The direct materials cost per unit is $140.60 for Product P9 and $107.50 for Product X2. Activity Measures DLHS orders MHS Unit 6.0 5.0 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Total Direct Labor- Hours 1,200 500 1,700 Estimated Overhead Cost $ 45,084 119,964 459,818 $ 624,866 Expected Activity Product P9 1,200 600 3,200 Product X2 500 700 2,900 Total 1,700 1,300 6,100 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product P9 would be closest to: (Round your intermediate calculations to 2 decimal places.)

Mckenny, Incorporated, manufactures and sells two products: Product P9 and Product X2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product P9 Product X2 Total direct labor-hours Direct Labor- Expected Hours Per Production 200 100 Activity Cost Pools. Labor-related Production orders Order size The direct labor rate is $28.20 per DLH. The direct materials cost per unit is $140.60 for Product P9 and $107.50 for Product X2. Activity Measures DLHS orders MHS Unit 6.0 5.0 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Total Direct Labor- Hours 1,200 500 1,700 Estimated Overhead Cost $ 45,084 119,964 459,818 $ 624,866 Expected Activity Product P9 1,200 600 3,200 Product X2 500 700 2,900 Total 1,700 1,300 6,100 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product P9 would be closest to: (Round your intermediate calculations to 2 decimal places.)

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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