The unit product cost of Product T6 under activity-based costing is closest to:

A) $2,075.92 per unit
B) $1,551.27 per unit
C) $1,703.82 per unit
D) $1,507.51 per unit

Question

The unit product cost of Product T6 under activity-based costing is closest to:A) $2,075.92 per unitB) $1,551.27 per unitC) $1,703.82 per unitD) $1,507.51 per unit

Chrislene Asucro · Accepted Answer

Final Answer : A, 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-Ref27Cracchiolo, Inc., manufactures and sells two products: Product H2 and Product A8.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 $15.10 per DLH.The direct materials cost per unit is $145.80 for Product H2 and $261.90 for Product A8.The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

The unit product cost of Product T6 under activity-based costing is closest to:

A) $2,075.92 per unit
B) $1,551.27 per unit
C) $1,703.82 per unit
D) $1,507.51 per unit

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