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Emergency Need help. Thank you. Lefave, Incorporated, manufactures and sells two products Product Q1 and Product D5. Data concerning the expected production of each product
Emergency Need help. Thank you.
Lefave, Incorporated, 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- Expected Hours Per Production Unit 2,100 6.1 950 3.1 Product 01 Product D5 Total direct labor-hours Total Direct Labor Hours 12,810 2,945 15,755 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Activity Cost Pools Labor-related Product testing Order size Activity Measures DLHS tests MHS Estimated Overhead Cost $ 163,482 59,909 215,825 $ 439,216 Expected Activity Product 01 Product DS Total 12,810 2,945 U15,755 950 850 1,800 4,900 4,800 9,700 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 $10.38 per DLH o $27.88 per DLH o o $22.25 per DLH O $33.28 per DLHStep by Step Solution
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