Business, 15.10.2020 08:01 leo4687

Mahaley, Inc., manufactures and sells two products: Product Q9 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: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product Q9 970 9.7 9,409
Product F0 970 7.7 7,469
Total direct labor-hours 16,878

The direct labor rate is $23.50 per DLH. The direct materials cost per unit for each product is given below:

Direct material cost per units
Product Q9 $176.60
Product F0 $148.40

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures and expected activity:

Activity Cost Pools Activity Measures Overhead Cost Product C1 Product M2 Total
Labor-related DLHs $558,452 7,200 7,700 14,900
Production orders orders 75,240 500 600 1,100
General factory MHs 886,410 4,400 4,600 9,000
$1,520,102

Required:

The overhead applied to each unit of Product C1 under activity-based costing is closest to:

a. $918.18 per unit.
b. $541.70 per unit.
c. $1,013.40 per unit.
d. $921.77 per unit.

Answers: 1

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Mahaley, Inc., manufactures and sells two products: Product Q9 and Product F0. Data concerning the e...

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