Serva,Inc ,Manufactures and Sells Two Products: Product R4 and Product

question 194

Multiple Choice

Serva,Inc. ,manufactures and sells two products: Product R4 and Product N4.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 R4 under activity-based costing is closest to:

• A)$566.96 per unit
• B)$601.16 per unit
• C)$429.43 per unit
• D)$535.31 per unit

---

Definitions:

Revolving Armature

An armature that rotates within a magnetic field in a generator or motor, converting electrical energy to mechanical energy, or vice versa.

Power Output

The total amount of power, usually measured in watts, that a device can produce or supply.

Induced Voltage

The voltage generated in a conductor or coil due to a changing magnetic field according to Faraday's law of electromagnetic induction.

Field Discharge Resistor

A resistor used to safely discharge stored energy from the field winding of a motor or generator during shutdown.