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Mathematics, 19.07.2021 20:00 drea445
Elect the best answer for me question 19. Adams Corporation makes two products: Product A and Product B. Annual production and sales are 500 units of Product A and 900 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products Product A requires 0.4 direct labor-hours per unit and Product B requires 0.5 direct labor-hours per unit. The total estimated overhead for next period is $67,522 The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools-Activity 1, Activity 2, and General Factory -with estimated overhead costs and expected activity as follows: Expected Activity Activity Cost Pool Activity 1 Activity 2 General Factory Total Estimated Overhead Costs $ 6.915 24,948 35,659 $67.522 Product A 300 2,100 200 Product B 200 700 450 Total 500 2,800 650 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.) The predetermined overhead rate under the traditional costing system is closest to which value?
A. $103.88
B. $13.83
C. $8.91
D. $54.86 ​
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Elect the best answer for me question 19. Adams Corporation makes two products: Product A and Produc...
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