Asked by Andrea Alena on Jun 18, 2024
Verified
Manzano, Inc., manufactures and sells two products: Product F1 and Product G2.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 is $248.70 for Product F1 and $266.00 for Product G2.The estimated total manufacturing overhead is $678,146. The unit product cost of Product G2 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A) $2,893.24 per unit
B) $751.24 per unit
C) $856.03 per unit
D) $674.24 per unit
Product F1
A specific product identified as F1, details of which would depend on the context in which it is referenced.
Direct Labor-Hours
The total hours worked by employees directly involved in manufacturing a product or providing a service.
- Analyze and differentiate between standard costing methods and Activity-Based Costing in the context of product pricing.
- Compute the price of each unit employing conventional and activity-based costing techniques.
Verified Answer
AF
Alexia FlowersJun 25, 2024
Final Answer :
A
Explanation :
Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours
= $678,146 ÷ 1,900 DLHs = $356.92 per DLH (rounded)
Computation of traditional unit product cost:
= $678,146 ÷ 1,900 DLHs = $356.92 per DLH (rounded)
Computation of traditional unit product cost:
Learning Objectives
- Analyze and differentiate between standard costing methods and Activity-Based Costing in the context of product pricing.
- Compute the price of each unit employing conventional and activity-based costing techniques.