Question

Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. 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/Unit Total Direct Labor-Hours Product W2 500 6 3,000 Product P8 600 5 3,000 Total direct labor-hours 6,000 The direct labor rate is $44.10 per DLH. The direct materials cost per unit is $210.60 for Product W2 and $147.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Measures Overhead Cost Product W2 Product P8 Total Labor-related DLHs $ 225,576 3,000 3,000 6,000 Production orders orders 19,238 550 450 1,000 Order size MHs 265,186 3,950 3,750 7,700 $ 510,000 The overhead applied to each unit of Product W2 under activity-based costing is closest to:

Answer 1

Answer:

The overhead applied to each unit of W2 under Activity-Based Costing is closest to  $518.81  

Explanation:

Find detailed computation in the attached.

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