Business, 07.08.2021 01:10 iuthvK5866

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 $ 25.50 $ 60.30 Direct labor per unit $ 6.00 $ 30.00 Direct labor-hours per unit 0.20 1.00 Annual production 50,000 20,000 The company's estimated total manufacturing overhead for the year is $1,050,000 and the company's estimated total direct labor-hours for the year is 30,000. 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 Measures Estimated Overhead Cost Supporting direct labor (DLHs) $ 450,000 Setting up machines (setups) 248,600 Parts administration (part types) 351,400 Total $ 1,050,000 Expected Activity Plain Fancy Total DLHs 10,000 20,000 30,000 Setups 1,517 969 2,486 Part types 664 340 1,004 The manufacturing overhead that would be applied to a unit of product Fancy under the activity-based costing system is closest to:

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