Aikman, Inc., manufactures and sells two products: Product O6 and Product O7.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 $17.50 per DLH.The direct materials cost per unit for each product is given below: The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The unit product cost of Product O6 is closest to:
A)$637.15 per unit
B)$896.71 per unit
C)$721.00 per unit
D)$661.45 per unit

Question

Aikman, Inc., manufactures and sells two products: Product O6 and Product O7.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 $17.50 per DLH.The direct materials cost per unit for each product is given below:  The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The unit product cost of Product O6 is closest to:
A)$637.15 per unit 
B)$896.71 per unit 
C)$721.00 per unit 
D)$661.45 per unit

Quizplus · Accepted Answer

Computation of activity rates: 11ea7998_5e8f_49c0_911b_3b2a170f988b_TB2627_00_TB2627_00 Computation of the overhead cost per unit under activity-based costing. 11ea7998_5e8f_49c1_911b_d7074f73b924_TB2627_00_TB2627_00 Computation of unit product costs under activity-based costing. 11ea7998_5e8f_49c2_911b_edb7efca2316_TB2627_00_TB2627_00