Dunnivan, Inc., manufactures and sells two products: Product T4 and Product A1. 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 $29.90 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 A1 under activity-based costing is closest to:
A)$1,190.92 per unit
B)$1,197.37 per unit
C)$857.20 per unit
D)$1,146.32 per unit

Question

Dunnivan, Inc., manufactures and sells two products: Product T4 and Product A1. 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 $29.90 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 A1 under activity-based costing is closest to:
A)$1,190.92 per unit 
B)$1,197.37 per unit 
C)$857.20 per unit 
D)$1,146.32 per unit

Quizplus · Accepted Answer

The Answer of Dunnivan, Inc., manufactures and sells two products: Product T4 and Product A1. 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 $29.90 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 A1 under activity-based costing is closest to:
A)$1,190.92 per unit 
B)$1,197.37 per unit 
C)$857.20 per unit 
D)$1,146.32 per unit