Barkes, Incorporated, manufactures and sells two products: Product BO and Product B5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product B0 Product B5 Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size Direct Labor- Expected Hours Per Production Unit 400 500 Activity Measures DLHS orders MHs The direct labor rate is $22.10 per DLH. The direct materials cost per unit is $288.10 for Product BO and $118.90 for Product B5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Overhead Cost 7.0 4.0 $ 136,944 64,629 588,294 $ 789,867 Total Direct Labor- Hours 2,800 2,000 4,800 Product B0 Product B5 2,800 2,000 500 400 3,300 3,000 Total 4,800 900 6,300 The total overhead applied to Product BO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Barkes, Incorporated, manufactures and sells two products: Product BO and Product B5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product B0 Product B5 Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size Direct Labor- Expected Hours Per Production Unit 400 500 Activity Measures DLHS orders MHs The direct labor rate is $22.10 per DLH. The direct materials cost per unit is $288.10 for Product BO and $118.90 for Product B5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Overhead Cost 7.0 4.0 $ 136,944 64,629 588,294 $ 789,867 Total Direct Labor- Hours 2,800 2,000 4,800 Product B0 Product B5 2,800 2,000 500 400 3,300 3,000 Total 4,800 900 6,300 The total overhead applied to Product BO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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