Trezise,Inc. ,manufactures and sells two products: Product L7 and Product O3.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 $15.60 per DLH.The direct materials cost per unit is $257.70 for Product L7 and $288.30 for Product O3.
The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: Required:
In all computations involving dollars in the following requirements,round off your answer to the nearest whole cent.
a.Compute the activity rates under the activity-based costing system.
b.Determine how much overhead would be assigned to each product under the activity-based costing system.
c.Determine the unit product cost of each product under the activity-based costing method.

Question

Trezise,Inc. ,manufactures and sells two products: Product L7 and Product O3.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 $15.60 per DLH.The direct materials cost per unit is $257.70 for Product L7 and $288.30 for Product O3.
The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity:  Required:
In all computations involving dollars in the following requirements,round off your answer to the nearest whole cent.
a.Compute the activity rates under the activity-based costing system.
b.Determine how much overhead would be assigned to each product under the activity-based costing system.
c.Determine the unit product cost of each product under the activity-based costing method.

Quizplus · Accepted Answer

The Answer of Trezise,Inc. ,manufactures and sells two products: Product L7 and Product O3.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 $15.60 per DLH.The direct materials cost per unit is $257.70 for Product L7 and $288.30 for Product O3.
The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity:  Required:
In all computations involving dollars in the following requirements,round off your answer to the nearest whole cent.
a.Compute the activity rates under the activity-based costing system.
b.Determine how much overhead would be assigned to each product under the activity-based costing system.
c.Determine the unit product cost of each product under the activity-based costing method.