Feauto Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its...
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Feauto 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, 163E and E761, about which it has provided the following data: 163E $18.30 E761 $ 54.90 Direct materials per unit Direct labor per unit Direct labor-hours per unit Annual production (units) $ 16.50 $ 49.50 1.00 30,000 3.00 10,000 The company's estimated total manufacturing overhead for the year is $2,760,000 and the company's estimated total direct labor-hours for the year is 60,000. The company is considering using a form 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 Measures Assembling products (direct labor-hours) Preparing batches (batches) Product support (product variations) Total Estimated Overhead Cost $ 1,500,000 252,000 1,008,000 $ 2,760,000 Direct labor-hours Batches Product variations Expected Activity 163E 30,000 1,140 2,280 E76I 30,000 Total 60,000 600 1,200 1,740 3,480 The manufacturing overhead that would be applied to a unit of product 163E under the company's traditional costing system is closest to: Multiple Choice $138.00 $44.10 $92.00 $46.00 Feauto 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, 163E and E761, about which it has provided the following data: 163E $18.30 E761 $ 54.90 Direct materials per unit Direct labor per unit Direct labor-hours per unit Annual production (units) $ 16.50 $ 49.50 1.00 30,000 3.00 10,000 The company's estimated total manufacturing overhead for the year is $2,760,000 and the company's estimated total direct labor-hours for the year is 60,000. The company is considering using a form 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 Measures Assembling products (direct labor-hours) Preparing batches (batches) Product support (product variations) Total Estimated Overhead Cost $ 1,500,000 252,000 1,008,000 $ 2,760,000 Direct labor-hours Batches Product variations Expected Activity 163E 30,000 1,140 2,280 E76I 30,000 Total 60,000 600 1,200 1,740 3,480 The manufacturing overhead that would be applied to a unit of product 163E under the company's traditional costing system is closest to: Multiple Choice $138.00 $44.10 $92.00 $46.00
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Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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