Mellencamp,Inc

question 11

Multiple Choice

Mellencamp,Inc. ,manufactures and sells two products: Product A3 and Product Y6.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 $24.20 per DLH.The direct materials cost per unit is $146.60 for Product A3 and $256.20 for Product Y6. 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 A3 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

• A)$632.44 per unit
• B)$693.16 per unit
• C)$815.00 per unit
• D)$863.08 per unit

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