Answer:
AZ-64409 Company
The unit product cost of Product W903 under activity-based costing is closest to:
= $999.
Explanation:
a) Data and Calculations:
Product W903 Product Z653
Annual production and sales 600 600
Direct labor-hours per unit 10.0 5.0
Total direct-labor hours 6,000 3,000 9,000
Direct labor rate $27.00 per DLH $27.00 per DLH
Direct labor costs per unit $270.00 $135.00
Direct materials cost per unit 227.00 283.00
Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W903 Product Z653 Total
Labor-related DLHs $ 40,936 6,000 3,000 9,000
Production orders orders 58,660 700 600 1,300
Order size MHs 433,375 3,800 3,000 6,800
$ 532,971
Activity Rates Product W903 Product Z653
Labor-related costs $4.55 per DLH 27,300 $13,650
Production orders $45.12 per order 31,584 27,072
Order size $63.73 per MH 242,174 191,190
Total costs assigned $301,058 $231,912
Overhead cost per unit $501.76 $386.52
Product W903 Product Z653
Direct labor costs per unit $270.00 $135.00
Direct materials cost per unit 227.00 283.00
Overhead cost per unit 502.00 387.00
Total cost per unit $999.00 $805.00
