Two products are manufactured by FBGNPU422 Corp. FBGNPU422 uses conventional job-order costing with a plantwide predetermined overhead rate and direct labor hours as the allocation base. FBGNPU422's...

Extracted text: Two products are manufactured by FBGNPU422 Corp. FBGNPU422 uses conventional job-order costing with a plantwide predetermined overhead rate and direct labor hours as the allocation base. FBGNPU422's records reveal the following per-unit costs for direct materials and direct labor: Product A 5,000 $57 Product B 2,000 $63 Production volume (units) Direct materials (ID#80160) Direct labor: 2 hours at $10/hour 5 hours at $10/hour $20 $50 FBGNPU422's accountants are thinking about a shift to activity-based costing and they collected the following MOH data: Activity Cost Pool Setups General factory Machine processing Estimated OH Cost $420,000 $2,020,000 $120,000 Activity cost driver Number of setups Direct labor hours Machine hours Expected Activity Product A 80 10,000 2,000 Product B 40 10,000 1,000 Q.) Assuming that FBGNPU422's actual and expected direct labor hours are the same, what is the unit product cost of Product B under conventional job-order costing? A.) $[ 7 of 25 Next >