Multiple Choice
Kepple Manufacturing currently uses a traditional costing system.The company allocates overhead to its two products,Zips and Dees,using a predetermined manufacturing overhead rate based on direct labour hours.Here is data related to the company's two products:
Information about the company's estimated manufacturing overhead for the year follows:
Total estimated direct labour hours for the company for the year are 110,000 hours.
The company is evaluating whether it should use an activity-based costing system in place of its traditional costing system.Additional information about production needed for the activity-based costing system follows:
The amount of manufacturing overhead that would be allocated to one unit of Zips using the traditional costing system would be closest to
A) $35.35.
B) $23.57.
C) $47.14.
D) $32.86.
Correct Answer:
Verified
Correct Answer:
Verified
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