Poma 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, R78S and N32Y, about which it has provided the following data: R78SN32YDirect materials per unit$27.20 $54.70 Direct labor per unit$8.80 $22.00 Direct labor-hours per unit 0.4 1.0 Annual production (units) 35,000 10,000 The company's estimated total manufacturing overhead for the year is $1,427,040 and the company's estimated total direct labor-hours for the year is 24,000.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 CostAssembling products (DLHs)$672,000 Preparing batches (batches) 255,840 Product support (product variations) 499,200 Total$1,427,040 Expected Activity R78SN32YTotalDLHs14,00010,00024,000Batches8161,1521,968Product variations8404081,248 The unit product cost of product R78S under the company's traditional costing system is closest to:
A. $59.83
B. $59.78
C. $47.20
D. $36.00
Answer: B
You might also like to view...
The auditor compares the total likely misstatements to each significant segment of the financial statements, such as total current assets, total noncurrent assets, total current liabilities, total noncurrent liabilities, owners' equity, and pretax income, to determine if they are, in aggregate, material to the financial statements
a. True b. False Indicate whether the statement is true or false
Which of the following are based on the feelings or sympathies of the audience?
A) Persuasive messages B) AIDA formatted messages C) Emotional appeals D) Direct appeals E) Logical appeals
Which technique induces a macro listening climate?
A. note taking B. leaning toward a speaker C. walking around D. rephrasing the speaker’s words
Social movement unionism is most closely aligned with which school of thought?
A. Mainstream economics. B. Human resource management. C. Industrial relations. D. Critical industrial relations.