Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The manufacturing overhead that would be applied to a unit of product MOSK under the activity-based costing system is closest to: Multiple Choice $39.16 O

image text in transcribedimage text in transcribed

The manufacturing overhead that would be applied to a unit of product MOSK under the activity-based costing system is closest to: Multiple Choice $39.16 O $16.76 O $49.71 $80.22 Look 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, NO6D and MO9K, about which it has provided the following data: Direct materials per unit Direct labor per unit Direct labor-hours per unit Annual production (units) NOOD $ 31.80 $ 10.00 0.20 45,600 MO9K $ 63.30 $ 27.00 1.00 21,100 The company's estimated total manufacturing overhead for the year is $1,632,986 and the company's estimated total direct labor-hours for the year is 30,220. 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 Supporting direct labor (direct labor-hours) Setting up machines (setups) Parts administration (part types) Total Estimated Overhead Cost $ 695,060 551, 702 386,224 $ 1,632,986 Direct labor-hours Setups Part types Expected Activity NOOD MOOK Total 9,120 21,100 30, 220 1,450 1,024 2,474 677 279 956

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Treasury Financial Manual Volume 1 Book 2

Authors: US Treasury

1st Edition

1790318432, 978-1790318438

More Books

Students also viewed these Accounting questions