Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. Data concerning the...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. 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 Product J9 400 6.0 2,400 Product S5 600 3.0 1,800 Total direct labor-hours 4,200 The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product J9 $111.40 Product S5 $275.20 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 Cost Pools Activity Measures Overhead Cost Product J9 Product S5 Total Labor-related DLHs $121,548 2,400 1,800 4,200 Machine setups setups 37,170 600 800 1,400 General factory MHs 385,848 4,700 4,500 9,200 $544,566 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 J9 would be closest to:
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
