Bohringer,Inc. ,manufactures and sells two products: Product A1 and Product X5.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $28.20 per DLH.The direct materials cost per unit is $256.50 for Product A1 and $165.20 for Product X5. The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The total overhead applied to Product A1 under activity-based costing is closest to:
A)$162,192
B)$224,568
C)$403,017
D)$318,720

Question

Bohringer,Inc. ,manufactures and sells two products: Product A1 and Product X5.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:  The direct labor rate is $28.20 per DLH.The direct materials cost per unit is $256.50 for Product A1 and $165.20 for Product X5. The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity:  The total overhead applied to Product A1 under activity-based costing is closest to:
A)$162,192 
B)$224,568 
C)$403,017 
D)$318,720

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_335c_7805_908b_33cf57529f1f_TB2461_00 Computation of the overhead cost under activity-based costing.
 11eaa3fe_335c_7806_908b_d7e4ed6ea733_TB2461_00