Business, 13.03.2020 23:25 johnathondevilchil
Lefave, Inc., manufactures and sells two products: Product Q1 and Product D5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product Q1 1,300 5.3 6,890 Product D5 550 2.3 1,265 Total direct labor-hours 8,155 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product Q1 Product D5 Total Labor-related DLHs $ 155,482 6,890 1,265 8,155 Product testing tests 51,909 550 450 1,000 Order size MHs 207,825 4,100 4,000 8,100 $ 415,216 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to.
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Lefave, Inc., manufactures and sells two products: Product Q1 and Product D5. Data concerning the ex...
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