Binegar 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, R58G and R09O, about which it has provided the following data:

- The manufacturing overhead that would be applied to a unit of product R09O under the activity-based costing system is closest to:
A) $113.46
B) $255.00
C) $141.54
D) $17.28

Question

Binegar 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, R58G and R09O, about which it has provided the following data:

- The manufacturing overhead that would be applied to a unit of product R09O under the activity-based costing system is closest to:

- The manufacturing overhead that would be applied to a unit of product R09O under the activity-based costing system is closest to:
A) $113.46 
B) $255.00 
C) $141.54 
D) $17.28

Quizplus · Accepted Answer

The correct choice is A) $113.46. This is calculated by applying the activity-based costing rates to the activities associated with product R09O.

Binegar Manufacturing Corporation Has a Traditional Costing System in Which