Betenbaugh,Inc. ,manufactures and sells two products: Product E4 and Product L8.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 $29.00 per DLH.The direct materials cost per unit is $223.90 for Product E4 and $122.30 for Product L8. 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 E4 under activity-based costing is closest to:
A)$4,275.10 per unit
B)$3,931.40 per unit
C)$2,076.86 per unit
D)$2,289.74 per unit

Question

Betenbaugh,Inc. ,manufactures and sells two products: Product E4 and Product L8.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 $29.00 per DLH.The direct materials cost per unit is $223.90 for Product E4 and $122.30 for Product L8. 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 E4 under activity-based costing is closest to:
A)$4,275.10 per unit 
B)$3,931.40 per unit 
C)$2,076.86 per unit 
D)$2,289.74 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_3387_3152_908b_7d3c06fb4d9c_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_3387_3153_908b_090e914515e9_TB2461_00 Computation of unit product costs under activity-based costing.
 11eaa3fe_3387_3154_908b_59316c318f5f_TB2461_00