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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
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 2.40 58,000 12,600 The company's estimated total manufacturing overhead for the year is $3,090,160 and the company's estimated total direct labor-hours for the year is 76,640. 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 $1,640,000 423,440 1,026,720 $3,090,160 Expected Activity Long Short Total DLHS 46,400 30,240 76,640 Setups 1,400 1,760 3,160. Part types 1,290 2,850 4,140 Unit overhead cost of Product Short under the activity-based costing system is closest to:
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