Homework Solutions  
» Home
  

See All Homework
Questions here

Question Description

 
Posted by: johnsonj
Price Quoted by Student: $1
Posted On: 2011-06-02 07:07:35
 
Question

Binegar 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-hour(DLHs). The company has two products, R58G and R09O, about which it has provided the following data:

 

R58G

R09O

Direct materials per unit

$16.9

$47.4

Direct labor per unit

$3

$34.2

Direct labor-hours per unit

0.1

2.1

Annual production

24,000

10,000

The company’s estimated total manufacturing overhead for the year is $2,210,000 and the company’s estimated total direct labor-hours for the year is 26,000.

 

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)

$910,000

Preparing batches(batches)

160,000

Product support(product variations)

1,140,000

Total

$2,210,000

 

 

Expected Activity

DLHs

R58G

R09O

Total

Batches

496

1,104

1,600

Product variations

1,410

1,590

3,000

The manufacturing overhead that would be applied to a unit of product R09O under the activity-based costing system is closet to:

$163.1

$173.21

$150.63

$137.48


Solutions
Solution   Activities Cost T
Price $4
Attachment 1: Binegar Manufacturing Corporation.doc
Solution Posted By: Johnsonj    Posted on: 02-06-2011