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Business, 17.10.2020 18:01 megamorph

Lillich, Inc., manufactures and sells two products: Product U6 and Product R5. 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 U6 640 8.4 5,376 Product R5 1,015 5.4 5,481 Total direct labor-hours 10,857 The direct labor rate is $27.50 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product U6 $249.30 Product R5 $166.70 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 U6 Product R5 Total Labor-related DLHs $ 196,138 5,376 5,481 10,857 Production orders orders 67,340 800 700 1,500 Order size MHs 1,015,108 5,400 5,700 11,100 $ 1,278,586 The unit product cost of Product V9 under activity-based costing is closest to:.

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