9) Proby, Incorporated, manufactures and sells two products: Product A7 and Product T0. Data concerning...
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9) Proby, Incorporated, manufactures and sells two products: Product A7 and Product T0. 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 A7 200 7.0 1,400 Product T0 100 9.0 900 Total direct labor-hours 2,300
The direct labor rate is $16.90 per DLH. The direct materials cost per unit is $243.90 for Product A7 and $167.60 for Product T0.
The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Required: a. Compute the activity rates under the activity-based costing system. b. Determine how much overhead would be assigned to each product under the activity-based costing system. c. Determine the unit product cost of each product under the activity-based costing method.
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