Proby, Inc., manufactures and sells two products: Product A7 and Product T0.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 $16.90 per DLH.The direct materials cost per unit is $243.90 for Product A7 and $167.60 for Product T0.

The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Required:
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

Proby, Inc., manufactures and sells two products: Product A7 and Product T0.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 $16.90 per DLH.The direct materials cost per unit is $243.90 for Product A7 and $167.60 for Product T0.

The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  Required:
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 Proby, Inc., manufactures and sells two products: Product A7 and Product T0.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 $16.90 per DLH.The direct materials cost per unit is $243.90 for Product A7 and $167.60 for Product T0.

The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  Required:
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.