Brenneis, Inc., manufactures and sells two products: Product T9 and Product T2. 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 $18.10 per DLH. The direct materials cost per unit is $115.20 for Product T9 and $221.40 for Product T2. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The overhead applied to each unit of Product T9 under activity-based costing is closest to:
A)$672.48 per unit
B)$784.53 per unit
C)$750.41 per unit
D)$457.88 per unit

Question

Brenneis, Inc., manufactures and sells two products: Product T9 and Product T2. 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 $18.10 per DLH. The direct materials cost per unit is $115.20 for Product T9 and $221.40 for Product T2. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The overhead applied to each unit of Product T9 under activity-based costing is closest to:
A)$672.48 per unit 
B)$784.53 per unit 
C)$750.41 per unit 
D)$457.88 per unit

Quizplus · Accepted Answer

The Answer of Brenneis, Inc., manufactures and sells two products: Product T9 and Product T2. 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 $18.10 per DLH. The direct materials cost per unit is $115.20 for Product T9 and $221.40 for Product T2. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The overhead applied to each unit of Product T9 under activity-based costing is closest to:
A)$672.48 per unit 
B)$784.53 per unit 
C)$750.41 per unit 
D)$457.88 per unit