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: 163E E76I $22.20 $66.60 $17.50 Direct materials per unit Direct labor per unit Direct labor-hours per unit Annual production (units) 0.50 84,000 The company's estimated total manufacturing overhead for the year is $3,141,600 and the company's estimated total direct labor-hours for the year is 84,000. 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: Activities and Activity Measures Assembling products (direct labor-hours) Preparing batches (batches) Product support (product variations). Total Direct labor-hours Batches Product variations Multiple Choice OOOO $50.82 $37.40 630 1,260 The manufacturing overhead that would be applied to a unit of product E761 under the activity-based costing system is closest to: $112.20 $ 52.50 1.50 28,000 $33.88 Expected Activity E761 163E 42,000 42,000 1,130 2,260 Estimated Overhead Cost $2,100,000 186,000 855,600 $ 3,141,600 Total 84,000 1,760 3,520

Name: Feauto Manufacturing Corporation has a traditional costing system in
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: 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 w