Banton, Inc., manufactures and sells two products: Product N0 and Product A8.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 $16.50 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 unit product cost of Product N0 under activity-based costing is closest to:
A)$1,034.37 per unit
B)$1,383.20 per unit
C)$842.10 per unit
D)$1,316.79 per unit

Question

Banton, Inc., manufactures and sells two products: Product N0 and Product A8.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 $16.50 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 unit product cost of Product N0 under activity-based costing is closest to:
A)$1,034.37 per unit 
B)$1,383.20 per unit 
C)$842.10 per unit 
D)$1,316.79 per unit

Quizplus · Accepted Answer

Computation of activity rates: 11ea7998_5e93_417e_911b_f31bbc850059_TB2627_00_TB2627_00 Computation of the overhead cost per unit under activity-based costing. 11ea7998_5e93_417f_911b_77c657180aa4_TB2627_00_TB2627_00 Computation of unit product costs under activity-based costing. 11ea7998_5e93_6890_911b_11a6c8d321fd_TB2627_00_TB2627_00