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TB MC Qu. 9-101 (Algo) Upton Manufacturing Corporation has a traditional... Upton Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead
TB MC Qu. 9-101 (Algo) Upton Manufacturing Corporation has a traditional... Upton 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, Long and Short, about which it has provided the following data: Direct materials per unit Direct labor per unit Direct labor-hours per unit Annual production Long $ 14.20 $ 16.80 0.80 66,eee Short $ 48.30 $ 50.40 2.40 14,000 The company's estimated total manufacturing overhead for the year is $2.936,000 and the company's estimated total direct labor-hours for the year is 85,600. 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 Direct labor support (DLHS) Setting up machines (setups) Part administration (part types) Total Estimated Overhead Cost $1,520,000 412,800 1,003, 200 $2,936,000 Expected Activity Long Short Total Part types 1,500 3,060 4,560 Unit overhead cost of Product Short under the activity-based costing system is closest to: Multiple Choice $62.84 $106.59. $143.60 $169.43
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