Dameron,Inc

question 59

Essay

Dameron,Inc. ,manufactures and sells two products: Product J5 and Product E7.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 $15.90 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: Required:
In all computations involving dollars in the following requirements,round off your answer to the nearest whole cent.
a.Compute the activity rates under the activity-based costing system.
b.Determine how much overhead would be assigned to each product under the activity-based costing system.
c.Determine the unit product cost of each product under the activity-based costing method.

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional stock.

Fed Funds Rate

The interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight.

Equilibrium Levels

The point at which market supply and demand balance each other, and as a result, prices become stable.

Real Interest Rates

Measures the borrowing cost of money after adjusting for inflation, providing a clearer view of the true cost of borrowing or the true yield on an investment.