Whiteley,Inc. ,manufactures and sells two products: Product M5 and Product P4.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 $27.50 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 P4 under activity-based costing is closest to:
A)$3,716.76 per unit
B)$3,135.65 per unit
C)$4,226.79 per unit
D)$3,648.00 per unit

Question

Whiteley,Inc. ,manufactures and sells two products: Product M5 and Product P4.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 $27.50 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 P4 under activity-based costing is closest to:
A)$3,716.76 per unit 
B)$3,135.65 per unit 
C)$4,226.79 per unit 
D)$3,648.00 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_334b_fcdc_908b_97037a38451f_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_334b_fcdd_908b_c32d2db14392_TB2461_00 Computation of unit product costs under activity-based costing.
 11eaa3fe_334c_23ee_908b_c1b6322de489_TB2461_00