Question

Salvatori, Inc., manufactures and sells two products: Product A4 and Product Q5. 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 A4 650 7.5 4,875 Product Q5 950 4.5 4,275 Total direct labor-hours 9,150 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product A4 Product Q5 Total Labor-related DLHs $ 165,558 4,875 4,275 9,150 Machine setups setups 13,050 1,050 950 2,000 Order size MHs 502,027 4,700 5,000 9,700 $ 680,635 The overhead applied to each unit of Product A4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Salvatori, Inc., manufactures and sells two products: Product A4 and Product 05. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Direct Total Labor Direct Expected Hours Per Labor- Production Unit Hours 650 7.5 4,875 4.5 4,275 9,150 Product A4 Product 05 Total direct labor-hours 950 The company has an activity based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Machine setups Order size Estimated Expected Activity Activity Overhead Measures Cost Product A4 Product 05 Total DLHS $165,558 4,875 4,275 9,150 setups 13,050 1,050 950 2,000 MHS 502,027 4,700 5,000 9,700 $680,635 The overhead applied to each unit of Product A4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice O $372.09 per unit O $520.49 per unit O $374.26 per unit O $509.94 per unit

Answer 1

Answer is 520.49 approx.calculation is as below

	Expected Prod	Direct Labor hrs per unit	Total DL hours
Product A4	650.00	7.50	4,875.00
Product Q5	950.00	4.50	4,275.00
	1,600.00		9,150.00
		a	b	c	d=b+c	e=a/d	f=e*b
			Expected Activity
Activity Cost Pools	Activity Measures	Estimated OH cost	Product A4	Product Q5	Total	Estimated cost per activity Measure	Estimated cost for Product A4
Labor Related	DLHs	165,558.00	4,875.00	4,275.00	9,150.00	18.09	88,207.13
Machine Setups	setups	13,050.00	1,050.00	950.00	2,000.00	6.53	6,851.25
Order Size	MHs	502,027.00	4,700.00	5,000.00	9,700.00	51.76	243,250.20
		680,635.00	10,625.00	10,225.00	20,850.00	76.37	338,308.58
Estimated Production of Product A4							650.00
Cost per Unit							520.47