Lamon, Inc., manufactures and sells two products: Product J9 and Product R6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product J9 would be closest to:
A)$120.78 per unit
B)$302.49 per unit
C)$457.83 per unit
D)$772.56 per unit

Question

Lamon, Inc., manufactures and sells two products: Product J9 and Product R6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:  The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product J9 would be closest to:
A)$120.78 per unit 
B)$302.49 per unit 
C)$457.83 per unit 
D)$772.56 per unit

Quizplus · Accepted Answer

The Answer of Lamon, Inc., manufactures and sells two products: Product J9 and Product R6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:  The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product J9 would be closest to:
A)$120.78 per unit 
B)$302.49 per unit 
C)$457.83 per unit 
D)$772.56 per unit