Fullard, Inc., manufactures and sells two products: Product E2 and Product G3. 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 has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The total overhead applied to Product E2 under activity-based costing is closest to:
A)$671,750
B)$417,960
C)$621,110
D)$725,520

Question

Fullard, Inc., manufactures and sells two products: Product E2 and Product G3. 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 has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The total overhead applied to Product E2 under activity-based costing is closest to:
A)$671,750 
B)$417,960 
C)$621,110 
D)$725,520

Quizplus · Accepted Answer

The Answer of Fullard, Inc., manufactures and sells two products: Product E2 and Product G3. 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 has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The total overhead applied to Product E2 under activity-based costing is closest to:
A)$671,750 
B)$417,960 
C)$621,110 
D)$725,520