Dunnivan,Inc

question 66

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 A1 under activity-based costing is closest to:

• A)$1,190.92 per unit
• B)$1,197.37 per unit
• C)$857.20 per unit
• D)$1,146.32 per unit

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Definitions:

Term Structure

Term Structure relates to the relationship between interest rates or bond yields and different terms or time to maturity, graphically represented as a yield curve.

Down-Sloping

Describes a trend or line on a graph that moves from a higher to a lower point, indicative of a decrease over time.

Future Inflation

The projected increase in the price level of goods and services over time, affecting the purchasing power of money.

Term Structure

Describes the relationship between interest rates or yields and the maturity of debt securities, typically depicted in a yield curve showing rates for various terms.