Look 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, N06D and M09K, about which it has provided the following data: The company's estimated total manufacturing overhead for the year is $1,807,648 and the company's estimated total direct labor-hours for the year is 29,800.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:
The manufacturing overhead that would be applied to a unit of product N06D under the company's traditional costing system is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $23.66
B) $12.13
C) $15.65
D) $7.12

Question

Look 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, N06D and M09K, about which it has provided the following data:  The company's estimated total manufacturing overhead for the year is $1,807,648 and the company's estimated total direct labor-hours for the year is 29,800.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:
 The manufacturing overhead that would be applied to a unit of product N06D under the company's traditional costing system is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $23.66 
B) $12.13 
C) $15.65 
D) $7.12

Quizplus · Accepted Answer

The Answer of Look 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, N06D and M09K, about which it has provided the following data:  The company's estimated total manufacturing overhead for the year is $1,807,648 and the company's estimated total direct labor-hours for the year is 29,800.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:
 The manufacturing overhead that would be applied to a unit of product N06D under the company's traditional costing system is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $23.66 
B) $12.13 
C) $15.65 
D) $7.12

Look Manufacturing Corporation Has a Traditional Costing System in Which