Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
|Expected Production||Direct Labor-Hours Per Unit||Total Direct Labor-Hours|
|Total direct labor-hours||7,200|
The direct labor rate is $42.10 per DLH. The direct materials cost per unit is $208.60 for Product W2 and $145.30 for Product P8.
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
|Activity Cost Pools||Activity Measures||Overhead Cost||Product W2||Product P8||Total|
The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
|OH cost per unit of Product W2|
|Activity||Estimated||Drivers||Activity||Driver used||Activity cost|
|Total Overheads allocated||2,93,324|
|Divide: Units produced||600|
|Oh cost per unit of W2||488.87|
|Answer is $ 488.87 per unit|
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