ation has traditional cost costing system in which it applies manufacturing overnead Activities and Activity Measures Assembling products (direct labor-hours) Preparing batches (batches) Product support (product variations) Total Direct labor-hours Batches Product variations 163E $18.30 $ 16.50 Direct materials per unit Direct labor per unit Direct labor-hours per unit 1.00 30,000 Annual production (units) The company's estimated total manufacturing overhead for the year is $2.760,000 and the company's estimated total direct labor-hours for the year is 60,000. E76I $ 54.90 $ 49.50 3.00 10,000 The company is considering using a form of activity-based costing to determine its unit product costs for externall reports. Data for this proposed activity-based costing system appear below: Estimated Overhead 163E 30,000 1,140 2,280 Expected Activity using a predetermined overnead rate Cost $ 1,500,000 252,000 1,000,000 $ 2,760,000 E76I Total 30,000 60,000 600 1,740 1,200 3,480 The manufacturing overhead that would be applied to a unit of product 163E under the company's traditional costing system is closest to company has products, lost and

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Feauto Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHS). The company has two products, 163E and E761, about which it has provided the following data:
Direct materials per unit
Direct labor per unit
Direct labor-hours per unit
Annual production (units)
The company's estimated total manufacturing overhead for the year is $2,760,000 and the company's estimated total direct labor-hours for the year is 60,000.
Activities and Activity Measures
Assembling products (direct labor-hours)
Preparing batches (batches)
Product support (product variations)
Total
Direct labor-hours
Batches
Product variations
The company is considering using a form of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:
Multiple Choice
O
O
O
$138.00
$44.10
I63E
$18.30
$16.50
1.00
30,000
$92.00
$46.00
E76I
$54.90
I63E
30,000
1,140
2,280
The manufacturing overhead that would be applied to a unit of product 163E under the company's traditional costing system is closest to:
$ 49.50
3.00
10,000
Expected Activity
E76I
30,000
600
1,200
Estimated Overhead
Total
60,000
1,740
3,480
Cost
$ 1,500,000
252,000
1,008,000
$ 2,760,000
Transcribed Image Text:Feauto Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHS). The company has two products, 163E and E761, about which it has provided the following data: Direct materials per unit Direct labor per unit Direct labor-hours per unit Annual production (units) The company's estimated total manufacturing overhead for the year is $2,760,000 and the company's estimated total direct labor-hours for the year is 60,000. Activities and Activity Measures Assembling products (direct labor-hours) Preparing batches (batches) Product support (product variations) Total Direct labor-hours Batches Product variations The company is considering using a form of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Multiple Choice O O O $138.00 $44.10 I63E $18.30 $16.50 1.00 30,000 $92.00 $46.00 E76I $54.90 I63E 30,000 1,140 2,280 The manufacturing overhead that would be applied to a unit of product 163E under the company's traditional costing system is closest to: $ 49.50 3.00 10,000 Expected Activity E76I 30,000 600 1,200 Estimated Overhead Total 60,000 1,740 3,480 Cost $ 1,500,000 252,000 1,008,000 $ 2,760,000
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