TB MC Qu.4-57(Static) Lefave, Incorporated, manufactures and sells... Lefave, Incorporated, manufactures and...

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Accounting

TB MC Qu.4-57(Static) Lefave, Incorporated, manufactures and sells...
Lefave, Incorporated, manufactures and sells two products: Product Q1 and Product D5. 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 Q11,0005.05,000
Product D54002.0800
Total direct labor-hours 5,800
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity
Product Q1 Product D5 Total
Labor-related DLHs $ 152,4825,0008005,800
Product testing tests 48,909400300700
Order size MHs 204,8253,8003,7007,500
$ 406,216
If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:
Multiple Choice
$26.29 per DLH
$70.04 per DLH
$69.87 per DLH
$27.31 per DLH

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