Question

Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. 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 Expected Direct Labor- Production Hours Per Unit 2.0 1.000 1.0 200 400 Product 79 Product 14 Total direct labor-hours 1.000 1.400 The direct labor rate is $27.30 per DLH. The direct materials cost per unit is $297 for Product F9 and $250 for Product 14 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity, Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS orders MHS Estimated Expected Activity Overhead Cost Product 79 Product 14 Total $ 31,200 400 1,000 1.400 49,540 600 1,000 1,600 100,950 4,000 2,800 6,800 $181,690 The overhead applied to each unit of Product 14 under activity based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice < Prey 2 of 2018 Next > MacBook Air

Answer 1

B D 1 Overhead Rates: 2 Labor-related 3 Production orders 4 Order size $22.285714 $30.962500 $14.845588 $22.29 per DLH $30.96 per order $14.85 pr MH 6 Overhead Applied to Product U4: 7 Labor-related 8 Production orders 9 Order size 10 Total applied overheads 11 Units of Product U4 12 Overhead applied to each unit of Product U4 | 13 Thus, the correct option is '$94.83 per unit'. $22,290 $30.960 $41.580 $94,830 1,000 $94.83 Calculations are shown below: B D 1 Overhead Rates: 2 Labor-related 3 Production orders 4 Order size =31200/1400 -49540/1600 =100950/6800 =ROUND(B2.2) =ROUND(B3,2) =ROUND (B4,2) per DLH per order pr MH 5 6 Overhead Applied to Product U4: 7 Labor-related 8 Production orders 9 Order size 10 Total applied overheads 11 Units of Product U4 12 Overhead applied to each unit of Product U4 13 Thus, the correct option is '$94.83 per unit'. =1000*C2 =1000*C3 =2800*C4 =SUM(B7:B9) 1000 =B10/B11