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169. Brenneis, Inc., manufactures and sells two products: Product T9 and Product T2. 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 T9 900 6.0 5,400
Product T2 900 8.0 7,200
Total direct labor-hours 12,600
The direct labor rate is $18.10 per DLH. The direct materials cost per unit is $115.20 for Product
T9 and $221.40 for Product T2
.
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 T9
Product T2
Total
Labor-related DLHs $583,002 5,400 7,200 12,600
Production orders orders 30,204 400 500 900
General factory MHs 798,950 4,900 4,600 9,500
$1,412,156
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 T9 would be closest to:
170. Brenneis, Inc., manufactures and sells two products: Product T9 and Product T2. 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 T9 900 6.0 5,400
Product T2 900 8.0 7,200
Total direct labor-hours 12,600
The direct labor rate is $18.10 per DLH. The direct materials cost per unit is $115.20 for Product
T9 and $221.40 for Product T2
.
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 T9
Product T2
Total
Labor-related DLHs $583,002 5,400 7,200 12,600
Production orders orders 30,204 400 500 900
General factory MHs 798,950 4,900 4,600 9,500
$1,412,156
The overhead applied to each unit of Product T9 under activity-based costing is closest to:
3-346
171. Brenneis, Inc., manufactures and sells two products: Product T9 and Product T2. 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 T9 900 6.0 5,400
Product T2 900 8.0 7,200
Total direct labor-hours 12,600
The direct labor rate is $18.10 per DLH. The direct materials cost per unit is $115.20 for Product
T9 and $221.40 for Product T2
.
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 T9
Product T2
Total
Labor-related DLHs $583,002 5,400 7,200 12,600
Production orders orders 30,204 400 500 900
General factory MHs 798,950 4,900 4,600 9,500
$1,412,156
Which of the following statements concerning the unit product cost of Product T9 is true?
172. Betenbaugh, Inc., manufactures and sells two products: Product E4 and Product L8. 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 E4 100 7.0 700
Product L8 400 6.0 2,400
Total direct labor-hours 3,100
The direct labor rate is $29.00 per DLH. The direct materials cost per unit is $223.90 for Product
E4 and $122.30 for Product L8
.
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 E4
Product L8
Total
Labor-related DLHs $73,005 700 2,400 3,100
Production orders orders 42,924 500 700 1,200
General factory MHs 709,050 4,300 4,400 8,700
$824,979
If the company allocates all of its overhead based on direct labor-hours using its traditional
costing method, the predetermined overhead rate would be closest to:
173. Betenbaugh, Inc., manufactures and sells two products: Product E4 and Product L8. 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 E4 100 7.0 700
Product L8 400 6.0 2,400
Total direct labor-hours 3,100
The direct labor rate is $29.00 per DLH. The direct materials cost per unit is $223.90 for Product
E4 and $122.30 for Product L8
.
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 E4
Product L8
Total
Labor-related DLHs $73,005 700 2,400 3,100
Production orders orders 42,924 500 700 1,200
General factory MHs 709,050 4,300 4,400 8,700
$824,979
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 E4 would be closest to:
174. Betenbaugh, Inc., manufactures and sells two products: Product E4 and Product L8. 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 E4 100 7.0 700
Product L8 400 6.0 2,400
Total direct labor-hours 3,100
The direct labor rate is $29.00 per DLH. The direct materials cost per unit is $223.90 for Product
E4 and $122.30 for Product L8
.
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 E4
Product L8
Total
Labor-related DLHs $73,005 700 2,400 3,100
Production orders orders 42,924 500 700 1,200
General factory MHs 709,050 4,300 4,400 8,700
$824,979
The unit product cost of Product L8 under the company's traditional costing method in which all
overhead is allocated on the basis of direct labor-hours is closest to:
175. Betenbaugh, Inc., manufactures and sells two products: Product E4 and Product L8. 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 E4 100 7.0 700
Product L8 400 6.0 2,400
Total direct labor-hours 3,100
The direct labor rate is $29.00 per DLH. The direct materials cost per unit is $223.90 for Product
E4 and $122.30 for Product L8
.
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 E4
Product L8
Total
Labor-related DLHs $73,005 700 2,400 3,100
Production orders orders 42,924 500 700 1,200
General factory MHs 709,050 4,300 4,400 8,700
$824,979
The activity rate for the General Factory activity cost pool under activity-based costing is closest
to:
176. Betenbaugh, Inc., manufactures and sells two products: Product E4 and Product L8. 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 E4 100 7.0 700
Product L8 400 6.0 2,400
Total direct labor-hours 3,100
The direct labor rate is $29.00 per DLH. The direct materials cost per unit is $223.90 for Product
E4 and $122.30 for Product L8
.
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 E4
Product L8
Total
Labor-related DLHs $73,005 700 2,400 3,100
Production orders orders 42,924 500 700 1,200
General factory MHs 709,050 4,300 4,400 8,700
$824,979
The overhead applied to each unit of Product L8 under activity-based costing is closest to:
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