Mahaley, Incorporated, manufactures and sells two products: Product Q9 and Product FO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:Product 09Product FeTotal direct labor-hoursProduct Q9Product FeThe direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below:DirectMaterialsCost perUnit$ 175.60$ 147.40Activity Cost PoolsLabor-relatedExpectedProduction870870Machine setupsOrder sizeThe company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:EstimatedOverheadCostDirectLabor-Hours PerUnit8.76.7ActivityMeasuresDLHSsetupsMHSTotalDirectLabor-Hours7,5695,82913,398$ 386,68047,330288, 200$ 722,210Expected ActivityProduct Q9 Product Fe7,5695,8296505503,8003,600Total13,3981,2007,400The unit product cost of Product FO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Businesses utilise Activity-Based Costing (ABC) as a costing technique to assign indirect costs to…

Mahaley, Incorporated, manufactures and sells two products: Product Q9 and Product FO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Labor- Hours Per Unit 8.7 6.7 Product 09 Product Fe Total direct labor-hours Product Q9 Product Fe The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below: Direct Materials. Cost per Unit $ 175.60 $ 147.40 Activity Cost Pools Labor-related Expected Production 870 870 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost $ 386,680 47,330 288,200 $ 722,210 Machine setups Order size Total Direct Labor- Hours 7,569 5,829 13,398 Activity Measures DLHS setups MHS Expected Activity Product 09 Product Fe 7,569 5,829 650 550 3,800 3,600 Total 13,398 1,200 7,400 The unit product cost of Product FO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Mahaley, Incorporated, manufactures and sells two products: Product Q9 and Product FO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Labor- Hours Per Unit 8.7 6.7 Product 09 Product Fe Total direct labor-hours Product Q9 Product Fe The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below: Direct Materials. Cost per Unit $ 175.60 $ 147.40 Activity Cost Pools Labor-related Expected Production 870 870 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost $ 386,680 47,330 288,200 $ 722,210 Machine setups Order size Total Direct Labor- Hours 7,569 5,829 13,398 Activity Measures DLHS setups MHS Expected Activity Product 09 Product Fe 7,569 5,829 650 550 3,800 3,600 Total 13,398 1,200 7,400 The unit product cost of Product FO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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