Fleurant, Incorporated, manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product W2 Product P8 Total direct labor-hours Expected Production 400 800 Activity Cost Pools Labor-related Production orders Order size Direct Labor- Hours Per Unit 8 4 The direct labor rate is $43.10 per DLH. The direct materials cost per unit is $209.60 for Product W2 and $146.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Measures DLHS orders MHS Estimated Overhead Cost $ 224,576 19,138 249,086 $ 492,800 Total Direct Labor-Hours 3,200 3,200 6,400 Product W2 Product P8 3,200 540 3,940 3,200 440 3,740 Total 6,400 980 7,680 The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Fleurant, Incorporated, manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product W2 Product P8 Total direct labor-hours Expected Production 400 800 Activity Cost Pools Labor-related Production orders Order size Direct Labor- Hours Per Unit 8 4 The direct labor rate is $43.10 per DLH. The direct materials cost per unit is $209.60 for Product W2 and $146.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Measures DLHS orders MHS Estimated Overhead Cost $ 224,576 19,138 249,086 $ 492,800 Total Direct Labor-Hours 3,200 3,200 6,400 Product W2 Product P8 3,200 540 3,940 3,200 440 3,740 Total 6,400 980 7,680 The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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