Shininger Manufacturing Corporation Has a Traditional Costing System in Which

Multiple Choice

Shininger 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, G27U and W21K, about which it has provided the following data: The company's estimated total manufacturing overhead for the year is $985,440 and the company's estimated total direct labor-hours for the year is 24,000.

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:

-The manufacturing overhead that would be applied to a unit of product W21K under the activity-based costing system is closest to:

A) $71.57
B) $41.06
C) $8.11
D) $30.51