50.1K

Verified Solution

Link Copied!

20.Answer choices A-$32.75B-$78.60C-$26.20D-$52.40

Feauto Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, 163E and E761, about which it has provided the following data: 163E E761 Direct materials per unit $ 21 . 30 $ 63 . 90 Direct labor per unit $ 16. 90 $ 50 . 70 Direct labor-hours per unit 0 . 80 2 . 40 Annual production (units ) 33 , 000 11 , 000 The company's estimated total manufacturing overhead for the year is $1,729,200 and the company's estimated total direct labor-hours for the year is 52,800. The company is considering using a form of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity- based costing system appear below: Estimated Activities and Activity Measures Overhead Cost Assembling products (direct labor-hours ) $ 528 , 000 Preparing batches (batches ) 182 , 000 Product support (product variations ) 1 , 019 , 200 Total $ 1, 729, 200 Expected Activity 163E E761 Total Direct labor-hours 26 , 400 26, 400 52 , 800 Batches 1, 100 720 1 , 820 Product variations 2 , 200 1 , 440 3 , 640 The manufacturing overhead that would be applied to a unit of product 163E under the company's traditional costing system is closest to

Answer & Explanation Solved by verified expert

See Answer