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Feauto Manufacturing Corporation has a traditional costing s…

Posted byAnonymous August 1, 2021October 9, 2023

Questions

Feаutо Mаnufаcturing Cоrpоration 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 EstimatedOverhead Cost Assembling products (DL hours) $720,000 Preparing batches (batches) $263,250 Product support (product variations) $1,080,000 Total $2,063,250       Expected Activity   I63E E76I Total DL 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 (PLEASE SHOW YOUR WORK BY USING THE HONORLOCK ON-SCREEN CALCULATOR):

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Tags: Accounting, Basic, qmb,

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