Dunnivan,Inc. ,manufactures and sells two products: Product T4 and Product A1.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 $29.90 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 A1 under activity-based costing is closest to:
A)$1,190.92 per unit
B)$1,197.37 per unit
C)$857.20 per unit
D)$1,146.32 per unit

Question

Dunnivan,Inc. ,manufactures and sells two products: Product T4 and Product A1.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 $29.90 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 A1 under activity-based costing is closest to:
A)$1,190.92 per unit 
B)$1,197.37 per unit 
C)$857.20 per unit 
D)$1,146.32 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_3355_e831_908b_ef405d6e495b_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_3356_0f42_908b_3f03294422d9_TB2461_00 Computation of unit product costs under activity-based costing.
 11eaa3fe_3356_0f43_908b_493affb1052e_TB2461_00