Arntson, Incorporated, manufactures and sells two products: Product R3 and Product NO. The annual production and sales of Product of R3 is 800 units and of Product NO is 500 units. Dataconcerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:Product R3Product NOTotal direct labor-hoursActivity Cost PoolsLabor-relatedProduction orders.Order sizeDirectLabor-Expected Hours PerProduction800500The direct labor rate is $20.80 per DLH. The direct materials cost per unit is $276.00 for Product R3 and $280.00 for Product NO.The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:EstimatedOverheadCostActivityMeasuresDLHSordersMHSUnit4.02.0TotalDirectLabor-Hours3,2001,0004, 200$ 40,83664, 650433, 275$ 538,761Expected ActivityProduct R3 Product No1,0003,2009005002,5003,100Total4, 2001,4005,600 The unit product cost of Product R3 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)Multiple Choice$608.61 per unit$332.61 per unit$691.81 per unit$967.81 per unit

ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…

The unit product cost of Product R3 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $608.61 per unit $332.61 per unit $691.81 per unit $967.81 per unit

The unit product cost of Product R3 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $608.61 per unit $332.61 per unit $691.81 per unit $967.81 per unit

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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