Miranda T. Corporation manufactures two products: A and B. The company's accounting records revealed the following per-unit costs for direct materials and direct labor: Product A Product B Production volume (units) 4,000 5,000 Direct materials $40 $60 Direct labor: 2.5 hours at $10/hour $25 2 hours at $10/hour $20 Management is considering a shift to activity-based costing and gathered the following manufacturing overhead data: Expected Activity Activity Cost Pool Estimated OH Cost Activity cost driver Product A Product B Setups $240000 Number of setups 80 40 General factory $2350000 Direct labor hours 10,000 10,000 Machine processing $120000 Machine hours 2,000 1,000 Q: Suppose the company uses conventional job-order costing with a plantwide predetermined overhead rate and direct labor hours as the allocation base. Assuming that actual and expected direct labor hours are the same, what is the unit product cost of Product B under conventional job-order costing

Miranda T. Corporation

Unit Product Cost of Product B under conventional job-order costing:

= $371.00

Explanation:

a) Data and Calculations:

                                           Product A            Product B

Production volume (units)    4,000                  5,000

Direct materials                      $40                     $60

Direct labor: at $10/hour       $25                     $20

Direct labor hours                   2.5                        2

b) Activity-based Costing System:

Manufacturing overhead:

Activity Cost Pool  Estimated           Activity cost                 Products

                              Overhead Cost       Driver                    A          B      

Setups                           $240,000     No. of setups           80          40

General factory         $2,350,000    Direct labor hours  10,000    10,000

Machine processing     $120,000    Machine hours        2,000       1,000

Total Overhead Cost $2,710,000

c) Allocation of overhead based on direct labor hours:

Product A = $2,710,000/20,000 x 10,000 = $1,355,000

Product B = $2,710,000/20,000 x 10,000 = $1,355,000

d) Calculation of Total and Unit Product Costs:

                                            Product A             Product B

Direct Materials                  $160,000             $300,000

Direct Labor                         250,000               200,000

Manufacturing overhead  1,355,000              1,355,000

Total product costs         $1,765,000           $1,855,000

Unit cost                               $441.25                 $371.00

steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

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be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation:

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

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