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The AZ-78804 company is considering adopting an activity-based costing system with the following activity cost pools, activity neasures, and expected activity: Estimated Expected Activity Activity Overhead Product Product Activity Cost Pools Labor-related Measures Cost W640 Z139 Total $ 41,436 60,110 433,875 DLHS 3,600 1,200 4,800 1,100 7,100 Production orders orders 700 400 Order size MHs 4,000 3,100 $535,421 The unit product cost of Product W640 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

The AZ-78804 company is considering adopting an activity-based costing system with the following activity cost pools, activity neasures, and expected activity: Estimated Expected Activity Activity Overhead Product Product Activity Cost Pools Labor-related Measures Cost W640 Z139 Total $ 41,436 60,110 433,875 DLHS 3,600 1,200 4,800 1,100 7,100 Production orders orders 700 400 Order size MHs 4,000 3,100 $535,421 The unit product cost of Product W640 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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AZ-78804 company makes and sells two products: Product W640 and Product Z139. The annual production and sales of Product W640 is 600O units and of Product Z139 is 400 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Total Labor- Direct Expected Hours Per Labor- Production Unit Hours Product W640 600 6.0 3,600 1,200 Product Z139 400 3.0 Total direct labor-hours 4,800 The direct labor rate is $29.70 per DLH. The direct materials cost per unit is $221.00 for Product W640 and $290.00 for Product Z139. The AZ-78804 company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Product Estimated Activity Overhead Product Cost W640 Z139 Total Activity Cost Pools Labor-related Measures $ 41,436 60,110 1,200 400 4,800 1,100 7,100 DLHS 3,600 orders 700 Production orders MHs 433,875 4,000 3,100 Order size $535,421 < Prev 5 of 12 Next > otv MAR 56 17,650 14
Transcribed Image Text:AZ-78804 company makes and sells two products: Product W640 and Product Z139. The annual production and sales of Product W640 is 600O units and of Product Z139 is 400 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Total Labor- Direct Expected Hours Per Labor- Production Unit Hours Product W640 600 6.0 3,600 1,200 Product Z139 400 3.0 Total direct labor-hours 4,800 The direct labor rate is $29.70 per DLH. The direct materials cost per unit is $221.00 for Product W640 and $290.00 for Product Z139. The AZ-78804 company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Product Estimated Activity Overhead Product Cost W640 Z139 Total Activity Cost Pools Labor-related Measures $ 41,436 60,110 1,200 400 4,800 1,100 7,100 DLHS 3,600 orders 700 Production orders MHs 433,875 4,000 3,100 Order size $535,421 < Prev 5 of 12 Next > otv MAR 56 17,650 14
Direct Expected Production Hours Per Labor- Product W640 Unit Hours 600 6.0 3,600 1,200 Product Z139 400 3.0 Total direct labor-hours 4,800 The direct labor rate is $29.70 per DLH. The direct materials cost per unit is $221.00 for Product W640 and $290.00 for Product Z139. The AZ-78804 company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Product Product Activity Cost Pools Measures Cost W640 Z139 Total Labor-related $ 41,436 60,110 433,875 DLHS 3,600 1,200 400 4,800 1,100 7,100 Production orders orders 700 Order size MHs 4,000 3,100 $535,421 The unit product cost of Product W640 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) ( Prev 5 of 12 Next > 56 MAR tv 17,650 14
Transcribed Image Text:Direct Expected Production Hours Per Labor- Product W640 Unit Hours 600 6.0 3,600 1,200 Product Z139 400 3.0 Total direct labor-hours 4,800 The direct labor rate is $29.70 per DLH. The direct materials cost per unit is $221.00 for Product W640 and $290.00 for Product Z139. The AZ-78804 company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Product Product Activity Cost Pools Measures Cost W640 Z139 Total Labor-related $ 41,436 60,110 433,875 DLHS 3,600 1,200 400 4,800 1,100 7,100 Production orders orders 700 Order size MHs 4,000 3,100 $535,421 The unit product cost of Product W640 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) ( Prev 5 of 12 Next > 56 MAR tv 17,650 14
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