Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3 is 700 units and of Product N0 is 400 units. 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 Direct Labor-Hours Per Unit Total Direct Labor-Hours Product R3 700 8.0 5,600 Product N0 400 4.0 1,600 Total direct labor-hours 7,200 The direct labor rate is $25.50 per DLH. The direct materials cost per unit is $214.00 for Product R3 and $218.00 for Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product R3 Product N0 Total Labor-related DLHs $ 39,836 5,600 1,600 7,200 Production orders orders 52,260 800 400 1,200 Order size MHs 432,275 3,000 3,300 6,300 $ 524,371 The unit product cost of Product R3 under activity-based costing is closest to: (Round
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Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production...
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