Sepulvado,Inc

question 7

Multiple Choice

Sepulvado,Inc. ,manufactures and sells two products: Product N7 and Product D4.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 $15.50 per DLH.The direct materials cost per unit is $197.00 for Product N7 and $290.50 for Product D4. The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method,the overhead assigned to each unit of Product D4 would be closest to:

• A)$413.84 per unit
• B)$539.63 per unit
• C)$128.80 per unit
• D)$327.18 per unit

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Definitions:

Selling Price

The amount of money for which a product is sold to the customer, not necessarily reflecting its cost or intrinsic value.

Department Spend

Relates to the total amount of money allocated and spent by a specific department within an organization.

Ensuring Budget

A financial plan that is designed to make sure all finances are covered and allocated appropriately for a certain period, often aimed at preventing overspending or deficits.

Business Planning Spectrum

Encompasses the variety of strategic and operational planning activities within a business, from long-term vision setting to short-term action planning.