Randolph,Inc. ,manufactures and sells two products: Product T5 and Product Y7.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: The total overhead applied to Product Y7 under activity-based costing is closest to:
A)$410,550
B)$132,035
C)$438,701
D)$469,200

Question

Randolph,Inc. ,manufactures and sells two products: Product T5 and Product Y7.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:  The total overhead applied to Product Y7 under activity-based costing is closest to:
A)$410,550 
B)$132,035 
C)$438,701 
D)$469,200

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_3341_0114_908b_e90a8f38dd89_TB2461_00 Computation of the overhead cost under activity-based costing.
 11eaa3fe_3341_2825_908b_b57f7e549f15_TB2461_00