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QUESTION 18 Bandit Manufacturing produces three products: Desk Lamps, Floor Lamps and Ceiling Lamps The following information is available for each product. Desk Floor Ceiling

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QUESTION 18 Bandit Manufacturing produces three products: Desk Lamps, Floor Lamps and Ceiling Lamps The following information is available for each product. Desk Floor Ceiling Direct material cost per unit $2.00 $8.00 $10.00 Direct labor cost per hour $15.00 $1675 $18.00 ufacturing presently applies overhead using a predetermined rate based on direct labor hours. Estimated Direct Labor hours for the year are 132,026 The product leader for Floor has suggested that Bandit Manufacturing switch to activity-based costing and identfed the following activities, cost drivers, estimated costs, and estimated cost driver units for the year: Estimated Recommended Estimated Cost Cost DriverCost Activity Driver Units 1256 Orders 12500 Ordering Cost Orders $33,912 Purchase Machine Machine Hours $1,425,000 12000 Hours Operations Environmental Compliance S125,400 110 Test Compliance Test Total OH Cost $1,584,312 What is the cost driver allocation rate for Machine Operations? a. $12 b. $114 C.$0.01 d.$0.04 Save All Answers wae and submit. Click Save All Answers to save all answers

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