Nole, Incorporated, manufactures and sells two products: Product W8 and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Total Direct Labor-Hours 900 11,000 11,900 The direct labor rate is $17.40 per DLH. The direct materials cost per unit for each product is given below: Product W8 Product NO Total direct labor-hours Product W8 Product NO Direct Materials Cost per Unit $ 176.40 $ 280.50 Expected Production 100 1,000 Activity Cost Pools Labor-related Machine setups Order size The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Product NO 11,000 400 4,200 Activity Measures Direct Labor- Hours Per Unit 9.0 11.0 DLHS setups MHS Expect Product W8 900 300 4,000 Hurhans and Animals Parallels Save & Exit Submit Help Estimated Overhead Cost $461,720 25,865 796,220 $ 1,283,805 The overhead applied to each unit of Product W8 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Total 11,900 700 8,200

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Chapter1: Financial Statements And Business Decisions
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Nole, Incorporated, manufactures and sells two products: Product W8 and Product NO. Data concerning the expected production of each product and
the expected total direct labor-hours (DLHs) required to produce that output appear below:
Product W8
Product NO
Total direct labor-hours
Total Direct
Labor-Hours
900
11,000
11,900
The direct labor rate is $17.40 per DLH. The direct materials cost per unit for each product is given below:
Direct Materials
Cost per Unit
$ 176.40
$ 280.50
Product W8
Product NØ
Expected
Production
100
1,000
Activity Cost Pools
Labor-related
Machine setups
Order size
Direct Labor-
Hours Per Unit
9.0
11.0
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Expect
Activity
Product NO
11,000
400
4,200
Multiple Choice
Activity
Measures
DLHS
setups
MHS
Estimated
Overhead Cost
$461,720
25,865
796,220
$ 1,283,805
The overhead applied to each unit of Product W8 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Product W8
900
300
4,000
< Prev
5 of 20
Hurhans and Animals Parallels
Save & Exit Submit
Help
Total
11,900
700
8,200
Next >
Transcribed Image Text:Nole, Incorporated, manufactures and sells two products: Product W8 and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product W8 Product NO Total direct labor-hours Total Direct Labor-Hours 900 11,000 11,900 The direct labor rate is $17.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 176.40 $ 280.50 Product W8 Product NØ Expected Production 100 1,000 Activity Cost Pools Labor-related Machine setups Order size Direct Labor- Hours Per Unit 9.0 11.0 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expect Activity Product NO 11,000 400 4,200 Multiple Choice Activity Measures DLHS setups MHS Estimated Overhead Cost $461,720 25,865 796,220 $ 1,283,805 The overhead applied to each unit of Product W8 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Product W8 900 300 4,000 < Prev 5 of 20 Hurhans and Animals Parallels Save & Exit Submit Help Total 11,900 700 8,200 Next >
Multiple Choice
$1,167.10 per unit.
$970.92 per unit
The overhead applied to each unit of Product W8 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
$3,884.00 per unit
796,220
$1,283,805
$4,344.05 per unit
4,000
< Prev
5 of 20
400
4,200
MacBook Pro
700
8,200
Next >
G
Transcribed Image Text:Multiple Choice $1,167.10 per unit. $970.92 per unit The overhead applied to each unit of Product W8 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) $3,884.00 per unit 796,220 $1,283,805 $4,344.05 per unit 4,000 < Prev 5 of 20 400 4,200 MacBook Pro 700 8,200 Next > G
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