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 N40S under the activity-based costing system is closest to:
A. $68.86
B. $124.68
C. $136.86
D. $68.00
Answer: C
You might also like to view...
How can reframing help a speaker manage the physical symptoms of communication apprehension?
What will be an ideal response?
Many organizations utilize ______ internally to retain and motivate employees, to promote from within, and to provide opportunities for upward mobility.
a. mentoring b. coaching c. 360-degree feedback d. career development
What is the difference between the humanistic and the utilitarian moral philosophies?
What will be an ideal response?
In the context of challenges to effective communication, the term _____ refers to any interference that causes the message you send to be different from the message your audience understands.
A. noise B. deflate C. tardiness D. clone