Aboud, Inc., manufactures and sells two products: Product Q6 and Product Z7. 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 $25.90 per DLH. The direct materials cost per unit for each product is given 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 Z7 under activity-based costing is closest to:
A)$103,880
B)$67,626
C)$61,188
D)$142,481

Question

Aboud, Inc., manufactures and sells two products: Product Q6 and Product Z7. 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 $25.90 per DLH. The direct materials cost per unit for each product is given 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 Z7 under activity-based costing is closest to:
A)$103,880 
B)$67,626 
C)$61,188 
D)$142,481

Quizplus · Accepted Answer

The Answer of Aboud, Inc., manufactures and sells two products: Product Q6 and Product Z7. 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 $25.90 per DLH. The direct materials cost per unit for each product is given 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 Z7 under activity-based costing is closest to:
A)$103,880 
B)$67,626 
C)$61,188 
D)$142,481