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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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: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
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
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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