- In Class Exercise 2 Hammer Inc Manufactures And Sells Two Products Product W7 And Product 15 Data Concerning The Ex 1 (82.02 KiB) Viewed 40 times
In-Class Exercise 2 Hammer, Inc., manufactures and sells two products: Product W7 and Product 15. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production 400 UNITS 500 UNITS Direct Labor-Hours Per Total Direct Labor- Unit Hours 5.0 DLH/UNIT 2,000 DLH 2.0 DLH/UNIT 1,000 DLH Product W7 Product 15 Total direct labor- hours 3,000 DLH The direct labor rate is $27.10 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $233.10 $209.90 Product W7 Product 15 The
company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Production orders General factory Activity Measures DLH Orders MHS Estimated Overhead Cost $123,810 22,178 359.920 $505,908 Expected Activity Product Product W7 15 Total 2,000 1,000 3,000 600 700 1,300 4,500 4,300 8,800