Foisy, Inc., manufactures and sells two products: Product N0 and Product U8.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The total overhead applied to Product U8 under activity-based costing is closest to:
A)$80,392
B)$111,312
C)$122,496
D)$194,680

Question

Foisy, Inc., manufactures and sells two products: Product N0 and Product U8.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:  The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The total overhead applied to Product U8 under activity-based costing is closest to:
A)$80,392 
B)$111,312 
C)$122,496 
D)$194,680

Quizplus · Accepted Answer

Computation of activity rates: 11ea7998_5e91_1e90_911b_2ddd6580f65b_TB2627_00_TB2627_00 Computation of the overhead cost under activity-based costing. 11ea7998_5e91_45a1_911b_511a11e3581a_TB2627_00_TB2627_00