Mellencamp,Inc

question 107

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 Y6 under activity-based costing is closest to:

• A)$1,151.80 per unit
• B)$676.28 per unit
• C)$1,082.58 per unit
• D)$1,139.74 per unit

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Definitions:

Item Substitution

The practice of replacing one item with another, typically similar item, often due to availability issues or cost benefits.

Environmental Strategies

Approaches adopted by businesses to minimize their ecological footprint and enhance sustainability through processes, products, or services.

Source Reduction

Efforts made to reduce the amount of waste created by altering the design, manufacture, or use of products and materials.

Financial Base

The underlying financial resources or assets that support an individual, organization, or project.