Dunnivan,Inc

question 154

Multiple Choice

Dunnivan,Inc. ,manufactures and sells two products: Product T4 and Product A1.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 $29.90 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 T4 under activity-based costing is closest to:

• A)$1,185.71 per unit
• B)$1,225.38 per unit
• C)$804.53 per unit
• D)$1,179.97 per unit

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Definitions:

Financial Information

Data pertaining to the financial status and activities of an individual, organization, or project, including assets, liabilities, revenues, and expenses.

Planning Purposes

The intention behind actions or decisions aimed at forecasting future operations, setting goals, and determining the strategies and resources required to achieve them.

Future Profitability

The expected financial success or ability of a company to generate profit in future periods.

Accounts Receivable Aging

A report showing the unpaid invoices of a business, categorized by the length of time an invoice has been outstanding.