The manufactoring overhead that would be applied to a unit of Plain under the company's traditional costing system is closest to:

 

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Chang 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, Plain and Fancy, about which it has provided the following data: Direct materials per unit Direct labor per unit Direct labor-hours per unit Annual production The company's estimated total manufacturing overhead for the year is $1,064,000 and the company's estimated total direct labor-hours for the year is 28,000. Plain $26.50 $ 4.90 0.20 40,000 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 Measures Supporting direct labor (DLHB) Setting up machines (setups) Parts administration (part types) Total DLHS Setups Part types Plain Fancy 8,000 20,000 1,787 704 Expected Activity 943 440 Fancy $ 61.30 $ 24.50 1.00 20,000 Estimated Overhead Cost $336,000 327,600 400,400 $1,064,000 Total 28,000 2,730 1,144 Chang 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, Plain and Fancy, about which it has provided the following data: Direct materials per unit Direct labor per unit Direct labor-hours per unit Annual production The company's estimated total manufacturing overhead for the year is $1,064,000 and the company's estimated total direct labor-hours for the year is 28,000. Plain $26.50 $ 4.90 0.20 40,000 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 Measures Supporting direct labor (DLHB) Setting up machines (setups) Parts administration (part types) Total DLHS Setups Part types Plain Fancy 8,000 20,000 1,787 704 Expected Activity 943 440 Fancy $ 61.30 $ 24.50 1.00 20,000 Estimated Overhead Cost $336,000 327,600 400,400 $1,064,000 Total 28,000 2,730 1,144

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Overhead rate estimated overheadestimated DLH Esimated Labor hour 40000... View the full answer