Business, 24.07.2020 18:01 ajay67

Lefave, Inc., manufactures and sells two products: Product Q1 and Product D5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product Q1 2,100 6.1 12,810
Product D5 950 3.1 2,945
Total direct labor-hours 15,755

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Expected Activity
Activity Cost Pools Activity Measures Estimated Overhead Cost Product Q1 Product D5 Total

Labor-related DLHs $172,482 21,000 5600 26,600
Product testing tests 68,909 1400? 1300 2700
General factory MHs 224,825 5800 5700 11,500
$466,216

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:

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Lefave, Inc., manufactures and sells two products: Product Q1 and Product D5. Data concerning the ex...

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