Business, 31.03.2020 03:48 recon12759

Chang 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, Plain and Fancy, about which it has provided the following data: Plain Fancy Direct materials per unit$24.60 $59.40 Direct labor per unit$5.10 $25.50 Direct labor-hours per unit 0.30 1.50 Annual production 40,000 20,000 The company's estimated total manufacturing overhead for the year is $1,159,200 and the company's estimated total direct labor-hours for the year is 42,000. 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 MeasuresEstimated Overhead Cost Supporting direct labor (DLHs) $504,000 Setting up machines (setups) 304,000 Parts administration (part types) 351,200 Total $1,159,200 Expected Activity Plain Fancy Total DLHs12,000 30,000 42,000 Setups1,030 970 2,000 Part types628 250 878 The manufacturing overhead that would be applied to a unit of Plain under the company's traditional costing system is closest to:

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