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Cassidy Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct
Cassidy 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, VIP and Kommander, about which it has provided the following data: The company's estimated total manufacturing overhead for the year is $3,019,080 and the company's estimated total direct labor-hours for the year is 56,600 . The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Unit overhead cost of Product Kommander under the activity-based costing system is closest to: Unit overhead cost of Product Kommander under the activity-based costing system is closest to: Multiple Choice $249.67. $83.75. $222.85. $139.10
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