Bobzien, Incorporated, manufactures and sells two products: Product B7 and Product Z5. Data concerning the expected production of each product andthe expected total direct labor-hours (DLHS) required to produce that output appear below:Product B7Product Z5Total direct labor-hoursExpected Hours PerProduction300800Activity Cost PoolsLabor-relatedProduction ordersOrder sizeDirectLabor-ActivityMeasuresDLHSordersMHsThe direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5.EstimatedOverheadCostUnit5.03.0The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:$ 39,58526,884462,768$529,237TotalDirectLabor-Hours1,5002,4003,900Expected ActivityProduct B7 Product Z51,5002,4005006004,6004,700Total3,9001,1009,300The activity rate for the Production Orders activity cost pool under activity-based costing is closest to: O$98.46 per order$56.91 per order$24.44 per order$100.60 per order

Activity-based costing (ABC): It is a costing method in which overhead and indirect costs are…

Bobzien, Incorporated, manufactures and sells two products: Product B7 and Product Z5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product B7 Product Z5 Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size Expected Hours Per Production 300 800 Activity Measures DLHs orders MHS Direct Labor- Estimated Overhead Cost The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity $ 39,585 26,884 462,768 $ 529,237 Unit 5.0 3.0 Total Direct Labor- Hours 1,500 2,400 3,900 Product B7 Product Z5 2,400 600 4,700 1,500 500 4,600 Total 3,900 1,100 9,300 The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:

Bobzien, Incorporated, manufactures and sells two products: Product B7 and Product Z5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product B7 Product Z5 Total direct labor-hours Activity Cost Pools Labor-related Production orders Order size Expected Hours Per Production 300 800 Activity Measures DLHs orders MHS Direct Labor- Estimated Overhead Cost The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity $ 39,585 26,884 462,768 $ 529,237 Unit 5.0 3.0 Total Direct Labor- Hours 1,500 2,400 3,900 Product B7 Product Z5 2,400 600 4,700 1,500 500 4,600 Total 3,900 1,100 9,300 The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:

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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