Business, 15.04.2021 22:00 sandlobster3129

Cassidy 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, VIP and Kommander, about which it has provided the following data: VIP Kommander Direct materials per unit $ 27.50 $ 62.10 Direct labor per unit $ 15.60 $ 52.00 Direct labor-hours per unit 0.60 2.00 Annual production 40,200 15,200 The company's estimated total manufacturing overhead for the year is $2,558,568 and the company's estimated total direct labor-hours for the year is 54,520. 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 Estimated Overhead Cost Assembling products (DLHs) $ 990,000 Preparing batches (batches) 408,888 Product support (product variations) 1,159,680 Total $ 2,558,568 Expected Activity VIP Kommander Total DLHs 24,120 30,400 54,520 Batches 1,478 1,046 2,524 Product variations 2,622 1,218 3,840 Unit overhead cost of Product Kommander under the activity-based costing system is closest to: Multiple Choice $71.67. $119.03. $190.70. $213.67.

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