Solum Manufacturing Corporation Has a Traditional Costing System in Which

Multiple Choice

Solum 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, V47Q and K41P, about which it has provided the following data: The company's estimated total manufacturing overhead for the year is $2,449,440 and the company's estimated total direct labor-hours for the year is 54,000.

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 unit product cost of product K41P under the activity-based costing system is closest to:

A) $204.82
B) $68.70
C) $182.80
D) $114.10