Aikman, inc., manufactures and sells two products: product o6 and product o7. 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 o6 200 9.0 1,800
product o7 800 10.0 8,000
total direct labor-hours 9,800
the direct labor rate is $17.50 per dlh. the direct materials cost per unit for each
product is given below:
direct materials cost per
unit
product o6 $206.50
product o7 $162.30
the company has 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 o6 product o7 total
labor-related dlhs $ 133,770 1,800 8,000 9,800
production orders orders 18,501 400 300 700
order size mhs 145,180 3,000 3,100 6,100
$ 297,451
the unit product cost of product o6 is closest to: (round your intermediate
calculations to 2 decimal