Sill, Inc., manufactures and sells two products: Product V9 and Product B1. 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 $27.40 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 V9 under activity-based costing is closest to:
A)$490.49 per unit
B)$421.50 per unit
C)$562.95 per unit
D)$617.08 per unit

Question

Sill, Inc., manufactures and sells two products: Product V9 and Product B1. 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 $27.40 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 V9 under activity-based costing is closest to:
A)$490.49 per unit 
B)$421.50 per unit 
C)$562.95 per unit 
D)$617.08 per unit

Quizplus · Accepted Answer

The Answer of Sill, Inc., manufactures and sells two products: Product V9 and Product B1. 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 $27.40 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 V9 under activity-based costing is closest to:
A)$490.49 per unit 
B)$421.50 per unit 
C)$562.95 per unit 
D)$617.08 per unit

Sill, Inc, Manufactures and Sells Two Products: Product V9 and Product