Diemer,Inc

Multiple Choice

Diemer,Inc. ,manufactures and sells two products: Product N4 and Product R7.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method,the predetermined overhead rate would be closest to:

A) $39.68 per DLH
B) $81.82 per DLH
C) $29.71 per DLH
D) $47.79 per DLH