Manzano, Inc., manufactures and sells two products: Product F1 and Product G2.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 $18.40 per DLH.The direct materials cost per unit is $248.70 for Product F1 and $266.00 for Product G2.The estimated total manufacturing overhead is $678,146.

The unit product cost of Product G2 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

Question

Manzano, Inc., manufactures and sells two products: Product F1 and Product G2.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 $18.40 per DLH.The direct materials cost per unit is $248.70 for Product F1 and $266.00 for Product G2.The estimated total manufacturing overhead is $678,146.

The unit product cost of Product G2 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

The unit product cost of Product G2 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours
= $678,146 ÷ 1,900 DLHs = $356.92 per DLH (rounded)
Computation of traditional unit product cost: 11ea7998_5e9e_8b72_911b_cf3e3063f712_TB2627_00_TB2627_00