Stirman, Inc., manufactures and sells two products: Product Z2 and Product F0. 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 $28.60 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: Required:
Determine the unit product cost of each product under the activity-based costing method.

Question

Stirman, Inc., manufactures and sells two products: Product Z2 and Product F0. 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 $28.60 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:  Required:
Determine the unit product cost of each product under the activity-based costing method.

Quizplus · Accepted Answer

The Answer of Stirman, Inc., manufactures and sells two products: Product Z2 and Product F0. 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 $28.60 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:  Required:
Determine the unit product cost of each product under the activity-based costing method.