Business, 01.03.2021 23:00 xojade

Feauto 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, I63E and E76I, about which it has provided the following data: I63E E76I Direct materials per unit $ 19.90 $ 54.40 Direct labor per unit $ 12.00 $ 31.50 Direct labor-hours per unit 0.80 2.10 Annual production (units) 30,000 10,000 The company's estimated total manufacturing overhead for the year is $2,063,250 and the company's estimated total direct labor-hours for the year is 45,000. The company is considering using a form 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 Estimated Overhead Cost Assembling products (direct labor-hours) $ 720,000 Preparing batches (batches) 263,250 Product support (product variations) 1,080,000 Total $ 2,063,250 Expected Activity I63E E76I Total Direct labor-hours 24,000 21,000 45,000 Batches 1,080 675 1,755 Product variations 2,115 1,485 3,600 The manufacturing overhead that would be applied to a unit of product E76I under the activity-based costing system is closest to:

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Feauto Manufacturing Corporation has a traditional costing system in which it applies manufacturing...

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