Teehan, Inc., manufactures and sells two products: Product U2 and Product W5. Data concerning the...
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Teehan, Inc., manufactures and sells two products: Product U2 and Product W5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below. Expected Direct Labor- Total Direct Production Hours Per Unit Labor-Hours Product 2 2,400 Product ws 200 1.600 Total direct labor-hours 4.000 400 The direct labor rate is $20.40 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit $249.40 $164.40 Product 2 Product WS The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity retivity Cont Pools Labor related Machine setupa Order ne Estimated Expected retivity Netivity Overhead Measures Cost Product U2 Product Total DLHS $ 92, 1202 ,400 1,600 4,000 setups 18,468 500 700 1,200 202,547 3,100 2,800 5,900 $313. 135 MES 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 W5 would be closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $274.64 per unit 0 $62624 per unit 0 O $184.24 per unit 0 O $123.12 per unit Teehan, Inc., manufactures and sells two products: Product U2 and Product WS. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below. Expected Direct Labor- Total Direct Production Hours Per Unit Labor-Hours Product 12 400 2,400 Product ws 200 1.600 Total direct labor-hours 4.000 The direct labor rate is $20.40 per DLH. The direct materials cost per unit for each product is given below. Direct Materials Cost per Unit $249.40 $164.40 Product 2 Product WS The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Activity Coat Pools Labor-related Machine Botupa Order ne Estimated Expected Activity Activity Overhead Measures Cost Product U2 Product Total DLHS $ 92,1202 ,400 1.600 4.000 setups 18,468 500 700 1,200 MHS 202,547 3,100 2,800 5,900 $313.135 The overhead applied to each unit of Product W5 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $718.73 per unit O $626.24 per unit $521.89 per unit $480.52 per unit
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