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Question 29 7.14 pts ABC Company has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate

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Question 29 7.14 pts ABC Company 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, R78 and R80, about which it has provided the following data: R78 R80 Direct materials per unit $27.20 $54.70 Direct labor per unit $8.80 $22.00 Direct labor-hours per unit 0.4 1.0 as Annual production (units) 35,000 10,000 The company's estimated total manufacturing overhead for the year is $1,427,040 and the company's estimated total direct labor-hours for the year is 24,000. 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 company's estimated total manufacturing overhead for the year is $1,427,040 and the company's estimated total direct labor-hours for the year is 24,000. 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: Activities and Activity Measures Estimated Overhead Cost Assembling products (DLHs) $672,000 h Preparing batches (batches) $255,840 Product support (product variations) $499.200 Total $1,427,040 Expected Activity R78 R80 Total Expected Activity R78 R80 Total DLHs 14,000 10,000 24,000 Batches 816 1,152 1,968 Product Variations 840 408 1,248 The unit product cost of product R80 under the activity-based costing system is closest to: $59.30 O $136.00 $76.70 O $136.16

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