Karsten,Inc

question 2

Multiple Choice

Karsten,Inc. ,manufactures and sells two products: Product M8 and Product I2.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 $21.20 per DLH.The direct materials cost per unit for each product is given below: 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 I2 under activity-based costing is closest to:

• A)$1,133.78 per unit
• B)$1,179.38 per unit
• C)$1,439.33 per unit
• D)$969.56 per unit

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Definitions:

Growth Rate

The rate at which a company's sales, earnings, dividends, or other financial indicators increase over a period of time.

EBIT

A profitability metric, Earnings Before Interest and Taxes, includes all company expenses with the exception of interest and tax charges.

Tax Rate

A proportion or rate at which an individual or business is taxed by the government, often expressed as a percentage.