Rondeau, Incorporated, manufactures and sells two products: Product V9 and Product M6. Data concerning the expected productio of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product V9 Product M6 Total direct labor-hours Product V9 Product M6 $ 289.60 $ 182.80 Expected Production 620 728 The direct labor rate is $27.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Activity Cost Pools Labor-related Direct Labor-Hours Per Unit 12.2 9.2 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 7,564 6,624 14,188 Activity Measures Estimated Overhead Cost DLHS $ 182,656 Product V9 7,564 Expected Activity Product M6 6,624 Total 14,188

Rondeau, Incorporated, manufactures and sells two products: Product V9 and Product M6. Data concerning the expected productio of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product V9 Product M6 Total direct labor-hours Product V9 Product M6 $ 289.60 $ 182.80 Expected Production 620 728 The direct labor rate is $27.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Activity Cost Pools Labor-related Direct Labor-Hours Per Unit 12.2 9.2 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 7,564 6,624 14,188 Activity Measures Estimated Overhead Cost DLHS $ 182,656 Product V9 7,564 Expected Activity Product M6 6,624 Total 14,188

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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Rondeau, Incorporated, manufactures and sells two products: Product V9 and Product M6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product V9 Product M6 Total direct labor-hours Product V9 Product M6 The direct labor rate is $24.20 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $275.60 $ 168.80 Activity Cost Pools Labor-related Product testing Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Required: Calculate the difference betwee the unit Expected Production 340 440 Traditional unit product cost ABC unit product cost Difference $ DLHs Tests MHS Product V9 Activity Measures Estimated Overhead Cost Direct Labor-Hours Per Unit 9.4 6.4 Product M6 0.00 $ Total Direct Labor-Hours 3,196 2,816 6,012 0.00 $ 95,656…
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