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Category > Accounting Posted 08 Aug 2017 My Price 7.00

Solum Manufacturing Corporation

Solum 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, V47Q and K41P, about which it has provided the following data: V47Q K41P 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 40,000 15,000 The company's estimated total manufacturing overhead for the year is $2,449,440 and the company's estimated total direct labor-hours for the year is 54,000. 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: Activity & Activity Measures Estimated Overhead Cost Assembling products (DLHs) $ 918,000 Preparing batches (batches) 397,440 Product support (product variations) 1,134,000 Total $2,449,440 Expected Activity V47Q K41P Total DLHs 24,000 30,000 54,000 Batches 1,458 1,026 2,484 Product variations 2,592 1,188 3,780 1. The unit product cost of product K41P under the company's traditional costing system is closest to: A. $204.82 B. $68.70 C. $182.80 D. $114.10 2. The unit product cost of product V47Q under the activity-based costing system is closest to: A. $53.30 B. $70.32 C. $43.10 D. $78.57

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Status NEW Posted 08 Aug 2017 11:08 PM My Price 7.00

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