ACCOUNTING 02089 Online C7 Exam 1-4 Question 19 (of 30) 19. 3.33 points Hadley,

Question

ACCOUNTING 02089 Online C7 Exam 1-4 Question 19 (of 30) 19. 3.33 points Hadley, Inc. manufactures a product that uses $16 in direct materials and S11 in direct labor per unit. Under the traditional costing system Hadley uses, manufacturing overhead applied to each unit is $18. However Hadley is considering switching to an ABC system. Under the ABC system, the total activity cost would be $28. What is the total manufacturing cost per unit for Hadley under the ABC system? O s27 O $28 O $55 O S45 0 Type here to search

Explanation / Answer

The correct answer is $ 55

Note :

Total Manufacturing Cost per Unit = Direct Material Cost per Unit + Direct labor Per Unit + Activity cost

= $ 16 + $ 11 + $ 28

= $ 55

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