Question
Use the following information to answer this and the following few questions: Sahara Industrial has recently adopted an activity-based costing (ABC) system. Sahara switched from
Use the following information to answer this and the following few questions:
Sahara Industrial has recently adopted an activity-based costing (ABC) system. Sahara switched from its previous method of allocating overhead costs based on a single predetermined overhead rate using direct labor hours. The direct labor hour cost per unit was $18. Assume there were no beginning inventories. Sahara gathered the following information to allow it to allocate costs using the new ABC system:
In July, the following additional information was also collected:
Using the ABC method, determine the total manufacturing cost for July.
Group of answer choices
1,663,240
1,588,290
2,100,850
1,500,000
Using the ABC method, determine Sahara's cost per unit for July.
Group of answer choices
250.12
259.88
301.76
276.19
Using Sahara's old method of allocating costs by direct labor hours and given the overhead cost per direct labor hour under the old method was $40, determine the overhead manufacturing cost applied for July.
Group of answer choices
1,059,200
1,000,000
1,256,345
400,000
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