Bolerjack,Inc. ,manufactures and sells two products: Product G9 and Product B6.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 $16.50 per DLH.The direct materials cost per unit is $204.30 for Product G9 and $284.50 for Product B6. 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 G9 under activity-based costing is closest to:
A)$1,705.74 per unit
B)$3,350.98 per unit
C)$1,293.24 per unit
D)$3,929.80 per unit

Question

Bolerjack,Inc. ,manufactures and sells two products: Product G9 and Product B6.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 $16.50 per DLH.The direct materials cost per unit is $204.30 for Product G9 and $284.50 for Product B6. 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 G9 under activity-based costing is closest to:
A)$1,705.74 per unit 
B)$3,350.98 per unit 
C)$1,293.24 per unit 
D)$3,929.80 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_334e_bc12_908b_09012adad0a9_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_334e_bc13_908b_0d90b7733701_TB2461_00 Computation of unit product costs under activity-based costing.
 11eaa3fe_334e_bc14_908b_7f191980a24a_TB2461_00