the overhead applied to each unit of Product U4 under activity-based costing is closest to: Blound your intermediate Multiple Choice O $225.43 per unt $214.37 per une $206.71 per unt O$12.72 per un G
the overhead applied to each unit of Product U4 under activity-based costing is closest to: Blound your intermediate Multiple Choice O $225.43 per unt $214.37 per une $206.71 per unt O$12.72 per un G
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places)
Mutiple Choice
O
$225.43 per un
$214.37 per unt
$206.71 per unt
$112.72 per unt
G

Transcribed Image Text:Chhom Incorporated, manufactures and cells two products Product F and Product U4 Data concerning the expected production of each product and the expected total direct labor hours (DLH required to produce that output
appear below
Product F9
Product 04
Total direct labor-hoursi
Expected Direct Labor-Hours Total Direct
Production
300
600
Activity Cost Pools
Labor-related
Production orders
order size
Per Unit
4.0
2.0
The direct labor rate is $25.90 per DLH The direct materials cost per unit is $285 for Product F9 and $244 for Product 4
The company is considering adopting an activity based costing system with the following activity cost pools, activity measures, and expected activity
Activity
Measures
DLHS
orders
MHS
Estimated
Overhead Cost Product
$ 42,600
67,630
137,820
$ 248,050
Labor-Hours
1,200
1,200
2,400
1,200
400
3,300
Expected Activity
Product U
1,200
GOO
3,100
Total
2,400
1,000
4,400
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