Figure 4-16
Samson Company recently installed an activity-based relational database. Using the information contained in the activity relational table, the following pool rates were computed:
$400 per purchase order
$24 per machine hour, Process 1
$30 per machine hour, Process 2
$80 per engineering hour
Two products are produced by Special Products: L and M. The plant has two manufacturing processes, Process 1 and Process 2. Other processes include engineering, product handling, and procurement. Product L goes through Process 1 while Product M goes through Process 2. The product relational table for Special Products is as follows:
Product L
Product M

-Refer to Figure 4-16. What is the unit cost of Product L?
A) $9.42
B) $504.00
C) $10.60
D) $7.52

Question

Figure 4-16
Samson Company recently installed an activity-based relational database. Using the information contained in the activity relational table, the following pool rates were computed:
$400 per purchase order
$24 per machine hour, Process 1
$30 per machine hour, Process 2
$80 per engineering hour
Two products are produced by Special Products: L and M. The plant has two manufacturing processes, Process 1 and Process 2. Other processes include engineering, product handling, and procurement. Product L goes through Process 1 while Product M goes through Process 2. The product relational table for Special Products is as follows:
Product L
  Product M
 
-Refer to Figure 4-16. What is the unit cost of Product L?
A) $9.42 
B) $504.00 
C) $10.60 
D) $7.52

Quizplus · Accepted Answer

The unit cost of Product L is $9.42. This is calculated by dividing the total cost of Product L ($942) by the number of units of Product L (100).

Figure 4-16 Samson Company Recently Installed an Activity-Based Relational Database. Using the Using