Assume that HiTech is using a volume-based costing system, and the preceding overhead costs are applied to all products on the basis of direct labor hours. The overhead cost that would be assigned to the Deluxe product line is closest to:
A) $456,471.
B) $646,471.
C) $961,176.
D) $1,141,176.
E) None of the other answers is correct.

Question

Quizplus · Accepted Answer

The overhead cost that would be assigned to the Deluxe product line is closest to $456,471. This is because the overhead costs are applied to all products on the basis of direct labor hours, and the Deluxe product line has the highest number of direct labor hours.

Assume That HiTech Is Using a Volume-Based Costing System, and the Preceding