Feauto 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, I63E and E76I, about which it has provided the following data: I63E E76I Direct materials per unit $ 22.60 $ 67.80 Direct labor per unit $ 11.40 $ 34.20 Direct labor-hours per unit 0.60 1.80 Annual production (units) 30,000 10,000 The company's estimated total manufacturing overhead for the year is $1,554,600 and the company's estimated total direct labor-hours for the year is 36,000. 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 Estimated Overhead Cost Assembling products (DLHs) $ 360,000 Preparing batches (batches) 181,000 Product support (product variations) 1,013,600 Total $ 1,554,600 Expected Activity I63E E76I Total DLHs 18,000 18,000 36,000 Batches 1180 690 1870 Product variations 2360 1380 3740 The manufacturing overhead that would be applied to a unit of product E76I under the activity-based costing system is closest to:

Feauto Manufacturing Corporation

The manufacturing overhead that would be applied to a unit of product E76I under the activity-based costing system is closest to:

= $62

Explanation:

a) Data and Calculations:

                                              I63E            E76I

Direct materials per unit  $ 22.60      $ 67.80

Direct labor per unit           $ 11.40      $ 34.20

Direct labor-hours per unit    0.60            1.80

Annual production (units) 30,000        10,000

Estimated manufacturing overhead = $1,554,600

Estimated direct labor hours = 36,000 hours

Activities and Activity Measures  Estimated Overhead Cost

Assembling products (DLHs)            $ 360,000

Preparing batches (batches)                  181,000

Product support (product variations) 1,013,600

Total                                                $ 1,554,600

Expected Activity    I63E     E76I     Total

Total DLHs            18,000  18,000 36,000

Batches                    1,180      690     1,870

Product variations 2,360     1,380   3,740

Activity rates:                                        Costs        Activities     Rates

Assembling products (DLHs)            $ 360,000    36,000     $10 per DLH

Preparing batches (batches)                  181,000       1,870      $96.80 per batche

Product support (product variations) 1,013,600       3,740     $271.02 per product variation

Manufacturing overhead applied:

                                            I63E                                 E76I

Assembling products  $180,000 ($10*18,000)      $180,000 ($10*18,000)  

Preparing batches           114,224 (1,180*$96.80)      66,792(690*$96.80)

Product support            639,607 (2,360*$271.02)  374,007 (1,380*$271.02)

Total overhead            $933,831                           $620,799

Annual production         30,000                               10,000

Overhead per unit        $31.13                               $62.08

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number