Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 9) proby, incorporated, manufactures and sells two

9) Proby, Incorporated, manufactures and sells two products: Product A7 and Product T0. Data concerning...

80.2K

Verified Solution

Question

Accounting

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:

Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product A7 Product T0 Total Labor-related DLHs $ 70,311 1,400 900 2,300 Production orders Orders 39,087 500 400 900 Order size MHs 389,286 4,000 4,100 8,100 $ 498,684

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.

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!
Become a Member

Other questions asked by students

Finance
1.2K views

A project has annual depreciation of $24,700, costs of $100,700, and sales of $148,500. The applicable...

Programming
1.2K views

The following 3 instances of code was provided by my embedded systems course. Can you explain...

Mechanical Engineering
1.2K views

The data listed below are claimed for a powercycle operatingbetween reservoirs at 527_C and 127_C. For...

Finance
1.2K views

•Calculate the variance analysis for the information provided below using this problem and the formula provided...

Basic Math
1.2K views

7 A loan secured by the value of a real estate property

Basic Math
1.2K views

What is the meaning of the base of the functiony = log3(x)?As y increases by...

Calculus
1.2K views

For each of the given functions f x find the derivative f c at the...

Calculus
1.2K views

The value of e that satisty the conclusion of the mean value theorem for f...

Accounting
1.2K views

Does the balance in the Estimated revenues account represent an asset? Why or why not?...

Accounting
1.2K views

Accounting
1.2K views

Below are departmental income statements for a guitar manufacturer. The company classifies...

Accounting
1.2K views

Complete the following cost variance report for July. Springsteen Company investigates all variances greater than...