Mellencamp,Inc. ,manufactures and sells two products: Product A3 and Product Y6.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 $24.20 per DLH.The direct materials cost per unit is $146.60 for Product A3 and $256.20 for Product Y6. 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 A3 under activity-based costing is closest to:
A)$863.08 per unit
B)$873.78 per unit
C)$924.58 per unit
D)$494.44 per unit

Question

Mellencamp,Inc. ,manufactures and sells two products: Product A3 and Product Y6.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 $24.20 per DLH.The direct materials cost per unit is $146.60 for Product A3 and $256.20 for Product Y6. 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 A3 under activity-based costing is closest to:
A)$863.08 per unit 
B)$873.78 per unit 
C)$924.58 per unit 
D)$494.44 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_338a_b3d5_908b_37f9f7506bf7_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_338a_dae6_908b_899846be6a0e_TB2461_00 Computation of unit product costs under activity-based costing.
 11eaa3fe_338a_dae7_908b_ed8f7c43b0fa_TB2461_00