Feauto Manufacturing Corporation Has a Traditional Costing System in Which

Multiple Choice

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: The company's estimated total manufacturing overhead for the year is $4,467,600 and the company's estimated total direct labor-hours for the year is 162,000.
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:
The manufacturing overhead that would be applied to a unit of product I63E under the company's traditional costing system is closest to:

A) $27.58
B) $74.46
C) $49.64
D) $24.82