Seldomridge, Inc., manufactures and sells two products: Product I5 and Product U0.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $24.40 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The unit product cost of Product U0 under activity-based costing is closest to:
A)$1,672.35 per unit
B)$2,504.73 per unit
C)$2,042.50 per unit
D)$2,885.25 per unit

Question

Seldomridge, Inc., manufactures and sells two products: Product I5 and Product U0.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:  The direct labor rate is $24.40 per DLH.The direct materials cost per unit for each product is given below:  The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The unit product cost of Product U0 under activity-based costing is closest to:
A)$1,672.35 per unit 
B)$2,504.73 per unit 
C)$2,042.50 per unit 
D)$2,885.25 per unit

Quizplus · Accepted Answer

Computation of activity rates: 11ea7998_5e94_c82c_911b_93eac6d01595_TB2627_00_TB2627_00 Computation of the overhead cost per unit under activity-based costing. 11ea7998_5e94_c82d_911b_61d13f42e4af_TB2627_00_TB2627_00 Computation of unit product costs under activity-based costing. 11ea7998_5e94_ef3e_911b_1bdd8a233ea5_TB2627_00_TB2627_00