Trezise, Inc

Essay

Trezise, Inc., manufactures and sells two products: Product L7 and Product O3. 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 $15.60 per DLH. The direct materials cost per unit is $257.70 for Product L7 and $288.30 for Product O3.
The company has 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.