Faz, Inc., manufactures and sells two products: Product XO 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 Direct Labor-Hours Production 1,000 Total Direct Per Unit Labor-Hours Product X0 5,000 Product W7 450 2 900 Total direct labor-hours 5,900 The direct labor rate is $24.60 per DLH. The direct materials cost per unit is $149.50 for Product XO and $131 for Product W7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activíty Activity Overhead Activity Cost Pools Measures Cost Product X0 Product W7 Total $ 277,078 19,448 244,674 5,000 5,900 1,300 8,200 Labor-related DLHS 900 Production orders orders 550 750 Order size MHs 4,050 4,150 $ 541,200 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: (Round your intermediate calculation to 2 decimal pleces.) Multiple Choice $234.81 per unit

Faz, Inc., manufactures and sells two products: Product XO 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 Direct Labor-Hours Production 1,000 Total Direct Per Unit Labor-Hours Product X0 5,000 Product W7 450 2 900 Total direct labor-hours 5,900 The direct labor rate is $24.60 per DLH. The direct materials cost per unit is $149.50 for Product XO and $131 for Product W7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activíty Activity Overhead Activity Cost Pools Measures Cost Product X0 Product W7 Total $ 277,078 19,448 244,674 5,000 5,900 1,300 8,200 Labor-related DLHS 900 Production orders orders 550 750 Order size MHs 4,050 4,150 $ 541,200 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: (Round your intermediate calculation to 2 decimal pleces.) Multiple Choice $234.81 per unit

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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