Business, 03.08.2021 04:40 isabellamason5900

Diemer, Inc., manufactures and sells two products: Product N4 and Product R7. 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 N4 200 9.0 1,800
Product R7 900 8.0 7,200
Total direct labor-hours 9,000
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 N4
Product R7
Total
Labor-related DLHs $357,120 1,800 7,200 9,000
Production orders orders 20,797 400 300 700
General factory MHs 358,425 3,800 3,700 7,500
$736,342
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:
a) $39.68 per DLH
b) $29.71 per DLH
c) $47.79 per DLH
d) $81.82 per DLH

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Diemer, Inc., manufactures and sells two products: Product N4 and Product R7. Data concerning the ex...

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