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36 Lefave, Inc., manufactures and sells two products: Product Q1 and Product D5. Data concerning the expected production of each product and the expected total
36 Lefave, Inc., manufactures and sells two products: Product Q1 and Product D5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Direct Labor-Hours Per Unit & 01:35:57 Expected Production 1,100 450 Total Direct Labor- Hours 5,610 945 6,555 Product 01 Product D5 Total direct labor-hours 5.1 2.1 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Labor-related Product testing Order size Activity Measures DLHS tests MHS Estimated Overhead Cost $153,482 49,909 205,825 $409,216 Product Q1 5,610 450 3,900 Product D5 945 350 3,800 Total 6,555 800 7,700 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to: Multiple Choice $23.41 per DLH $62.43 per DLH $62.39 per DLH $26.73 per DLH O
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