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...

14Faz, 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<br>14<br>appear below:<br>Expected Direct Labor-Hours<br>Total Direct<br>Production<br>Per Unit<br>Labor-Hours<br>1<br>Product X0<br>points<br>1,000<br>5,000<br>Product W7<br>450<br>900<br>Total direct labor-hours<br>5,900<br>The direct labor rate is $24.60 per DLH. The direct materials cost per unit is $149.50 for Product X0 and $131 for Product W7.<br>The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:<br>Estimated<br>***** Expected Activity<br>Activity<br>Overhead<br>Activity Cost Pools<br>Measures<br>Cost<br>Product xe Product W7<br>Total<br>Labor-related<br>DLHS<br>$ 277,078<br>900<br>5,900<br>5,000<br>550<br>Production orders<br>orders<br>19,448<br>244,674<br>$ 541,200<br>750<br>1,300<br>Order size<br>MHs<br>4,050<br>4,150<br>8,200<br>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 X0 would be closest to: (Round your intermediate<br>calculation to 2 decimal places.)<br>Multiple Choice<br>$234.81 per unit<br>

Extracted text: 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 14 appear below: Expected Direct Labor-Hours Total Direct Production Per Unit Labor-Hours 1 Product X0 points 1,000 5,000 Product W7 450 900 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 X0 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 Activity Activity Overhead Activity Cost Pools Measures Cost Product xe Product W7 Total Labor-related DLHS $ 277,078 900 5,900 5,000 550 Production orders orders 19,448 244,674 $ 541,200 750 1,300 Order size MHs 4,050 4,150 8,200 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 X0 would be closest to: (Round your intermediate calculation to 2 decimal places.) Multiple Choice $234.81 per unit

Jun 09, 2022
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