Pachero, Inc

question 114

Multiple Choice

Pachero, Inc., manufactures and sells two products: Product T1 and Product U6. 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 $15.90 per DLH. The direct materials cost per unit is $259.80 for Product T1 and $188.80 for Product U6. 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 U6 under activity-based costing is closest to:

• A)$2,305.84 per unit
• B)$1,124.00 per unit
• C)$1,472.65 per unit
• D)$3,025.80 per unit

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Definitions:

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Information that is irrational or not based on sound reasoning, often due to errors, outliers, or incorrect inputs.

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Table

An arrangement of data made up of rows and columns that is often used to organize and present information systematically.