Serva,Inc. ,manufactures and sells two products: Product R4 and Product N4.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 $24.70 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 R4 under activity-based costing is closest to:
A)$566.96 per unit
B)$601.16 per unit
C)$429.43 per unit
D)$535.31 per unit

Question

Serva,Inc. ,manufactures and sells two products: Product R4 and Product N4.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 $24.70 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 R4 under activity-based costing is closest to:
A)$566.96 per unit 
B)$601.16 per unit 
C)$429.43 per unit 
D)$535.31 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_3365_ee1b_908b_53ae4a6356ab_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_3365_ee1c_908b_99182a5b6b59_TB2461_00 Computation of unit product costs under activity-based costing.
 11eaa3fe_3366_152d_908b_1ff1218c29cd_TB2461_00

Serva,Inc ,Manufactures and Sells Two Products: Product R4 and Product