Abbe, Inc., manufactures and sells two products: Product O9 and Product A3. 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 $24.40 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 O9 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A)$544.48 per unit
B)$759.76 per unit
C)$660.48 per unit
D)$926.24 per unit

Question

Abbe, Inc., manufactures and sells two products: Product O9 and Product A3. 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 $24.40 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 O9 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A)$544.48 per unit 
B)$759.76 per unit 
C)$660.48 per unit 
D)$926.24 per unit

Quizplus · Accepted Answer

The Answer of Abbe, Inc., manufactures and sells two products: Product O9 and Product A3. 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 $24.40 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 O9 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A)$544.48 per unit 
B)$759.76 per unit 
C)$660.48 per unit 
D)$926.24 per unit

Abbe, Inc, Manufactures and Sells Two Products: Product O9 and Product