The unit product cost of Product F0 under activity-based costing is closest to:

A) $1,395.25 per unit
B) $1,530.38 per unit
C) $1,445.24 per unit
D) $1,709.40 per unit

Question

The unit product cost of Product F0 under activity-based costing is closest to:A) $1,395.25 per unitB) $1,530.38 per unitC) $1,445.24 per unitD) $1,709.40 per unit

Kathleen Corcolon · Accepted Answer

Final Answer : D, Explanation :  Computation of activity rates:   Computation of the overhead cost per unit under activity-based costing.   Computation of unit product costs under activity-based costing.   Reference: CH04-Ref11Snavely, Inc., manufactures and sells two products: Product E1 and Product A7.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:   The direct labor rate is $18.40 per DLH.The direct materials cost per unit for each product is given below:   The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

The unit product cost of Product F0 under activity-based costing is closest to:

A) $1,395.25 per unit
B) $1,530.38 per unit
C) $1,445.24 per unit
D) $1,709.40 per unit

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