Penegar,Inc. ,manufactures and sells two products: Product X7 and Product S4.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 $21.60 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 overhead applied to each unit of Product S4 under activity-based costing is closest to:
A)$472.29 per unit
B)$627.96 per unit
C)$1,007.68 per unit
D)$837.27 per unit

Question

Penegar,Inc. ,manufactures and sells two products: Product X7 and Product S4.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 $21.60 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 overhead applied to each unit of Product S4 under activity-based costing is closest to:
A)$472.29 per unit 
B)$627.96 per unit 
C)$1,007.68 per unit 
D)$837.27 per unit

Quizplus · Accepted Answer

The Answer of Penegar,Inc. ,manufactures and sells two products: Product X7 and Product S4.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 $21.60 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 overhead applied to each unit of Product S4 under activity-based costing is closest to:
A)$472.29 per unit 
B)$627.96 per unit 
C)$1,007.68 per unit 
D)$837.27 per unit