Koszyk Manufacturing Corporation Has a Traditional Costing System in Which

Multiple Choice

Koszyk Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour-hours (DLHs) . The company has two products, P85G and C43S, about which it has provided the following data:

The company's estimated total manufacturing overhead for the year is $2,264,000 and the company's estimated total direct labour-hours for the year is 40,000.

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:


-(Appendix 5B) The total cost of a unit of product P85G under the company's traditional costing system is closest to:

A) $146.97
B) $102.58
C) $101.69
D) $80.50