Appleby, Inc., manufactures and sells two products: Product Q9 and Product V8. 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-HoursProduct Q9800 5.0 4,000 Product V81,000 3.0 3,000 Total direct labor-hours 7,000 The direct labor rate is $29.30 per DLH. The direct materials cost per unit is $174.80 for Product Q9 and $168.90 for Product V8.The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead CostExpected Activity???Product Q9Product
V8TotalLabor-relatedDLHs$214,480 4,0003,0007,000Production ordersorders 41,065 300200500Order sizeMHs 192,700 4,2004,0008,200 $448,245 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:
A. $30.64 per DLH
B. $82.13 per DLH
C. $23.50 per DLH
D. $64.04 per DLH
Answer: D
You might also like to view...
Which of the following bonds has a comparatively higher yield to maturity??
A. ?A one-year bond with a 6.7 percent interest today B. ?A three-year bond with a 5 percent interest today C. ?A two-year bond with a 4 percent interest today D. ?A four-year bond with a 4.5 percent interest today
Every relation is a table, but not every table is a relation
Indicate whether the statement is true or false
A(n) ________ is a working demonstration of selected portions of the future system
Fill in the blank(s) with correct word
Concerning the Federal estate tax deduction for asset transfers to charity:
a. The deduction is allowed only if the decedent had a valid will. b. A deduction is allowed for a gift to the cemetery association. c. A deduction is disallowed if the gift is made to the United Way of Bosnia. d. All of the above statements are true.