Abbe,Inc ,Manufactures and Sells Two Products: Product O9 and Product

question 18

Multiple Choice

Abbe,Inc. ,manufactures and sells two products: Product O9 and Product A3.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 $24.40 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 O9 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

• A)$544.48 per unit
• B)$759.76 per unit
• C)$660.48 per unit
• D)$926.24 per unit

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Definitions:

Artificially Increases

Refers to the process of increasing a value or quantity through unnatural or synthetic means, often in a context that suggests manipulation or deceit.

Quick Profit

Gains realized from the rapid buying and selling of securities or other assets, aiming for short-term financial gain.

Debentures

A type of long-term debt instrument that is not secured by physical assets or collateral.

Warrants

Financial instruments that give the holder the right to purchase shares of a company at a specific price within a certain time period.