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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
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 Short $ 14.20 $ 48.30 $ 16.80 $ 50.40 0.80 52,000 2.40 11,400 The company's estimated total manufacturing overhead for the year is $3,164,480 and the company's estimated total direct labor-hours for the year is 68,960. 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 $1,710,000 426,320 1,028,160 $3,164,480 Expected Activity Long Short Total DLHS 41,600 27,360 68,960 Setups 1,280 1,640 2,920 Part types 1,110 2,670 3,780 DLHS Long 41,600 Short Total 27,360 68,960 Setups 1,280 1,640 2,920 Part types 1,110 2,670 3,780 Unit overhead cost of Product Short under the activity-based costing system is closest to: Multiple Choice $194.30. $144.23 $229.27 $85.04 < Prev 4 of 25 Next > Save & EXIL
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