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Need ASAP Festo Manufacturing Corporation has a traditional costing system in which it apples manufacturing overhead to its products using a predetermined overhead cate based
Need ASAP
Festo Manufacturing Corporation has a traditional costing system in which it apples manufacturing overhead to its products using a predetermined overhead cate based on direct labor hour 100s). The company has two products. 1635 and E761 about which it has provided the following data 163 E767 Direct materiale per unit $21.90 5.65.70 Direct labor per unit $11.10 $ 33.30 Direct labor-hours per unit 0.50 1.50 Annual production (units) 48,000 16,000 The company's estimated total manufacturing overhead for the year is $1963.200 and the companys estimated total direct labor hours for the year is 48000 The company is considering using a form of activity based costing to determine ts unit product costs for external reports. Data for this proposed activity based costing system appeat below. Estimated Activities and activity Measures overhead Cont Assembling products (direct labor-hours) $ 960,000 Preparing batches batches) 228,800 Product support (product Variations) 774,400 Total $ 1,963,200 Direct labor-hours Batches Product Variations Expected Activity 163 5761 Total 24,000 24,000 48,000 1.250 720 1,970 2,500 1,440 3.940 The manufacturing overhead that would be applied to a unit of product 163 under the company's traditional costing system is closest to Multiple Choice O $61.35 $40.90 O O $40.90 $20.45 Step by Step Solution
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