3.(5 Points) Samson, Inc. manufactures and sells two products: Product S6 and Product U3. Data...

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Accounting

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3.(5 Points) Samson, Inc. manufactures and sells two products: Product S6 and Product U3. 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 S6 Product U3 Total direct labor-hours 200 8.0 9.0 The direct labor rate is $20.90 per DLH. The direct materials cost per unit is $145.30 for Product S6 and $221.50 for Product U3. 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 S6 Product U3 Labor-related Production orders orders General factory MHs Total $251,230 98,150 1,600 8,100 9,700 600 1,000 DLHs 400 171,044 3,200 2,900 6,100 $520,424

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