Sow,Inc ,Manufactures and Sells Two Products: Product I4 and Product

question 139

Multiple Choice

Sow,Inc. ,manufactures and sells two products: Product I4 and Product P3.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 $24.70 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 P3 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

• A)$1,216.79 per unit
• B)$1,139.21 per unit
• C)$573.83 per unit
• D)$1,232.18 per unit

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Definitions:

Optimal Product Mix

The combination of products that yields the highest profit or efficiency for a company under given constraints and market conditions.

REIT

A real estate investment trust is a company that owns or finances income-producing real estate.

Income-Producing Real Estate

Property that is primarily purchased or developed to earn revenue through leasing, renting, or price appreciation.

Financial Markets

Facilities or platforms that support the trading of financial instruments including stocks, bonds, and currencies among investors.