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 X5 under activity-based costing is closest to:
A)$810,960
B)$312,080
C)$748,560
D)$570,132

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 X5 under activity-based costing is closest to:
A)$810,960 
B)$312,080 
C)$748,560 
D)$570,132

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_335d_3b59_908b_4bd32ce55923_TB2461_00 Computation of the overhead cost under activity-based costing.
 11eaa3fe_335d_626a_908b_e1e2c2b53708_TB2461_00