Business, 15.10.2020 09:01, lololololol16
Faz, Inc., manufactures and sells two products: Product X0 and Product W7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product X0 2,000 4 8,000
Product W7 440 3 1,320
Total direct labor-hours 9,320
The direct labor rate is $38.60 per DLH. The direct materials cost per unit is $163.50 for Product X0 and $145 for Product W7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Expected Activity
Activity Cost Pools Activity Measures Estimated Overhead Cost Product X0 Product W7 Total
Labor-related DLHs $276,078 8,000 1,320 9,320
Production orders orders 19,348 540 740 1,280
Order size MHs 241,614 4,040 4,140 8,180
$537,040
If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product XO would be closest to:
Answers: 2
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Faz, Inc., manufactures and sells two products: Product X0 and Product W7. Data concerning the expec...
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