Sampaga, Inc

question 100

Multiple Choice

Sampaga, Inc., manufactures and sells two products: Product S6 and Product U3. 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 $20.90 per DLH. The direct materials cost per unit is $145.30 for Product S6 and $221.50 for Product U3. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product U3 would be closest to:

• A)$482.85 per unit
• B)$883.35 per unit
• C)$252.36 per unit
• D)$233.10 per unit

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Definitions:

Utility

the total satisfaction or benefit derived from consuming a good or service.

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The cognitive processes that regulate an individual's ability to organize thoughts, actions, and emotions to achieve goals.

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The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.