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 Product B Production volume (units) 5,000 $42 2,000 $37 Direct materials (ID#12705) 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: Expected Activity Product A Activity Cost Pool Setups General factory Machine processing Estimated OH Cost Activity cost driver Number of setups Product B $360,000 $2,140,000 $280,000 80 40 10,000 2,000 Direct labor hours 10,000 1,000 Machine hours 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: $ < prev="" next=""> 10 of 25