Coudriet 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, P93S and N40S, about which it has provided the following data: P93SN40SDirect materials per unit$21.90 $54.80 Direct labor per unit$8.80 $13.20 Direct labor-hours per unit 0.80 1.20 Annual production (units) 35,000 15,000 The company's estimated total manufacturing overhead for the year is $2,172,580 and the company's estimated total direct labor-hours for the year is 46,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based
costing system appear below: Activities and Activity MeasuresEstimatedOverhead CostDirect labor support (DLHs)$552,000 Setting up machines (setups) 419,980 Part administration (part types) 1,200,600 Total$2,172,580 Expected Activity P93SN40STotalDLHs28,00018,00046,000Setups2,1621,6563,818Part types1,8862,1164,002 The unit product cost of product P93S under the company's traditional costing system is closest to:
A. $63.26
B. $30.70
C. $40.30
D. $68.48
Answer: D
You might also like to view...
Sales of woollen clothing usually increase during the winter season and decline thereafter. This is an example of ________ demand
A) irregular B) declining C) impulse D) latent E) negative
A lease is accounted for as a capital lease if the lease term is 75% or more of the property's economic life
a. True b. False Indicate whether the statement is true or false
On April 1, 2018, Nunez Manufacturers purchases equipment for $100,000, paying $30,000 in cash and signing a 10-year mortgage for $70,000 at 8% annual interest
Prepare the journal entry to record the acquisition of the equipment. Omit explanation.
Differentiate between styles, fashions, and fads. Illustrate your response with examples of each
What will be an ideal response?