Question

Help Save & Exit Submit 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 Production 1,500 470 Direct Labor- Hours Per Unit Total Direct Labor-Hours 7,500 Product xo Product W7 Total direct labor-hours 1.410 8.910 The direct labor rate is $26.60 per DLH. The direct materials cost per unit is $151.50 for Product XO and $133 for Product W7 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS orders MHS Estimated Overhead Cost $ 279,078 19,648 242,074 $540,800 Product xo Product W7 7,500 1,410 570 770 4,070 4,1708 Total 8,910 1,340 ,240 The overhead applied to each unit of Product XO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice < Prey 9 of 20 !! Next MacBook Air

Answer 1

Answer:

Calculate overhead applied
	Product X0
Labor related (279078/8,910*7500)	2,34,914
Production orders (19648/1340*570)	8,358
Order size (242074/8240*4070)	1,19,568
Total overhead	3,62,840
Unit	1,500
Unit cost	241.89
So 3rd option is correct. i.e. $241.89