Finken, Inc., manufactures and sells two products: Product H9 and Product L0. 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 $16.10 per DLH. The direct materials cost per unit is $256.40 for Product H9 and $125.00 for Product L0. The estimated total manufacturing overhead is $441,772. The unit product cost of Product L0 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A)$419.12 per unit
B)$611.42 per unit
C)$309.20 per unit
D)$686.24 per unit

Question

Finken, Inc., manufactures and sells two products: Product H9 and Product L0. 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 $16.10 per DLH. The direct materials cost per unit is $256.40 for Product H9 and $125.00 for Product L0. The estimated total manufacturing overhead is $441,772. The unit product cost of Product L0 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A)$419.12 per unit 
B)$611.42 per unit 
C)$309.20 per unit 
D)$686.24 per unit

Quizplus · Accepted Answer

The Answer of Finken, Inc., manufactures and sells two products: Product H9 and Product L0. 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 $16.10 per DLH. The direct materials cost per unit is $256.40 for Product H9 and $125.00 for Product L0. The estimated total manufacturing overhead is $441,772. The unit product cost of Product L0 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A)$419.12 per unit 
B)$611.42 per unit 
C)$309.20 per unit 
D)$686.24 per unit