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Mamadi Inc. uses a traditional normal costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct
Mamadi Inc. uses a traditional normal costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour-hours (DLHs). The company has two products, Mishkaki and Choma, about which it has provided the following data: The company's estimated total manufacturing overhead for the year is $2,264,000 and the company's estimated total direct labour-hours for the year is 40,000 . 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: The total cost of a unit of product Mishkaki under the company's traditional costing system is closest to: Question 32 options: $80.50 $146.97 None of the answers available is correct $101.69 $102.58
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