Boahn, Inc., manufactures and sells two products: Product B6 and Product W8. 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 W8 would be closest to:
A)$1,859.67 per unit
B)$356.67 per unit
C)$545.49 per unit
D)$456.30 per unit

Question

Boahn, Inc., manufactures and sells two products: Product B6 and Product W8. 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 W8 would be closest to:
A)$1,859.67 per unit 
B)$356.67 per unit 
C)$545.49 per unit 
D)$456.30 per unit

Quizplus · Accepted Answer

The Answer of Boahn, Inc., manufactures and sells two products: Product B6 and Product W8. 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 W8 would be closest to:
A)$1,859.67 per unit 
B)$356.67 per unit 
C)$545.49 per unit 
D)$456.30 per unit