7 (6) Overhead allocation based solely on a measure of volume such as direct labor-hours (a) is a key aspect of the activity-based costing model. must be used for external financial reporting. (c) will systematically over-cost low-volume products and under-cost high-volume products. (d) will systematically over-cost high-volume products and under-cost low-volume products. 34 8 Eddins Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume 4,000 units 5,000 units Direct materials $89,200 $111,500+ Direct labor $64,400 $80,500 Manufacturing overhead $292,800 $314,500 The best estimate of the total variable manufacturing cost per unit is: (a) $21.70 (6) $60.104 S88.40 (d) None of the above