Whiteley, Inc., manufactures and sells two products: Product M5 and Product P4. 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 $27.50 per DLH. The direct materials cost per unit for each product is given below: $$\begin{array} { | l | r | }
\hline & \text { Direct Materials Cost per Unit } \
\hline \text { Product M5 } & \$ 185.20 \
\hline \text { Product P4 } & \$ 244.20 \
\hline
\end{array}$$ 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 P4 under activity-based costing is closest to:
A)$3,716.76 per unit
B)$3,135.65 per unit
C)$4,226.79 per unit
D)$3,648.00 per unit

Question

Whiteley, Inc., manufactures and sells two products: Product M5 and Product P4. 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 $27.50 per DLH. The direct materials cost per unit for each product is given below: $$\begin{array} { | l | r | } 
\hline & \text { Direct Materials Cost per Unit } \
\hline \text { Product M5 } & \$ 185.20 \
\hline \text { Product P4 } & \$ 244.20 \
\hline
\end{array}$$ 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 P4 under activity-based costing is closest to:
A)$3,716.76 per unit 
B)$3,135.65 per unit 
C)$4,226.79 per unit 
D)$3,648.00 per unit

Quizplus · Accepted Answer

The Answer of Whiteley, Inc., manufactures and sells two products: Product M5 and Product P4. 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 $27.50 per DLH. The direct materials cost per unit for each product is given below: $$\begin{array} { | l | r | } 
\hline & \text { Direct Materials Cost per Unit } \
\hline \text { Product M5 } & \$ 185.20 \
\hline \text { Product P4 } & \$ 244.20 \
\hline
\end{array}$$ 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 P4 under activity-based costing is closest to:
A)$3,716.76 per unit 
B)$3,135.65 per unit 
C)$4,226.79 per unit 
D)$3,648.00 per unit

Whiteley, Inc The Company Is Considering Adopting an Activity-Based Costing System with Product