Binegar Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour-hours (DLHs) . The company has two products, R58G and R09O, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $1,617,600 and the company's estimated total direct labour-hours for the year is 24,000.
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:
-(Appendix 5B) The manufacturing overhead that would be applied to a unit of product R09O under the activity-based costing system is closest to:
A) $113.46
B) $255.00
C) $141.54
D) $17.28
Correct Answer:
Verified
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