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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

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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 761 Direct materials per unit $ 20.20 $ 60.60 Direct labor per unit $ 14.30 $ 42.90 Direct labor-hours per unit 1.10 3.30 Annual production (units) 45,000 15,000 The company's estimated total manufacturing overhead for the year is $2.928.600 and the company's estimated total direct labor-hours for the year is 99,000 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 (DLHS) Preparing batches (batches) Product support (product variations) Total Estimated Overhead Cost $1,980,000 204,600 744.000 $2.928.600 Expected Activity 163E8761 Total DLES 49,500 49,500 99,000 Batches 1,290 680 1,970 Product Variations 2,580 1,360 3,940 The manufacturing overhead that would be applied to a unit of product 1638 under the company's traditional costing system is closest to Multiple Choice 0 O $29.58 $9762 0 0 $65.08 O 0 $32.54

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