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

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Definitions:

Revenue Bond

A type of municipal bond supported by the revenue from a specific project or source, rather than general tax revenues.

General-Obligation Bond

A type of municipal bond that is secured by the full faith and credit of the issuing government, including its taxing power to repay the bondholders.

Russell 2000

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A stock market index tracking the performance of 500 of the largest companies listed on stock exchanges in the United States.