Crazier,Inc. ,manufactures and sells two products: Product U8 and Product W2.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 $22.10 per DLH.The direct materials cost per unit for each product is given below: The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The unit product cost of Product U8 is closest to:
A)$995.06 per unit
B)$1,051.20 per unit
C)$980.31 per unit
D)$669.78 per unit

Question

Crazier,Inc. ,manufactures and sells two products: Product U8 and Product W2.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 $22.10 per DLH.The direct materials cost per unit for each product is given below:  The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity:  The unit product cost of Product U8 is closest to:
A)$995.06 per unit 
B)$1,051.20 per unit 
C)$980.31 per unit 
D)$669.78 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_3347_8fef_908b_59de449cb2d3_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_3347_b700_908b_876823031dfa_TB2461_00 Computation of unit product costs under activity-based costing.
 11eaa3fe_3347_de11_908b_5b98454cfa85_TB2461_00