The manufacturing overhead would be applied to a unit of product slow under the company's traditional costing system is closest to: a) 15.06 b)23.40 c)8.34 d)3.94

Russell Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined 10 overhead rate based on direct labor-hours (DLHs). The company has two products, Slow and Fast, about which it has provided the following data: Slow Fast Direct materials per unit $ 14. 10 $ 43. 40 0.9 Direct labor per unit $ 3.20 $ 25.60 points Direct labor-hours per unit 0. 20 1. 60 Annual production 35, 000 20, 000 eBook The company's estimated total manufacturing overhead for the year is $1,626,700 and the company's estimated total direct labor-hours for the year is 39,000. References 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: Estimated Activities and Activity Measures Overhead Cost Assembling products (DLHs) 770, 000 Preparing batches (batches) 387 , 700 Product support (product variations) 469, 000 Total $1, 626, 700 Expected Activity Slow Fast Total DLHS 7,000 32,000 39 , 000 Batches 1 , 480 1, 510 2, 990 Product variations 720 690 1, 410