Aboud,Inc. ,manufactures and sells two products: Product Q6 and Product Z7.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 $25.90 per DLH.The direct materials cost per unit for each product is given below: 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 Z7 under activity-based costing is closest to:
A)$103,880
B)$67,626
C)$61,188
D)$142,481

Question

Aboud,Inc. ,manufactures and sells two products: Product Q6 and Product Z7.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 $25.90 per DLH.The direct materials cost per unit for each product is given below:  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 Z7 under activity-based costing is closest to:
A)$103,880 
B)$67,626 
C)$61,188 
D)$142,481

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_335f_d376_908b_317f50921419_TB2461_00 Computation of the overhead cost under activity-based costing.
 11eaa3fe_335f_fa87_908b_e91e5ba5a214_TB2461_00

Aboud,Inc ,Manufactures and Sells Two Products: Product Q6 and Product