Fullard,Inc. ,manufactures and sells two products: Product E2 and Product G3.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 has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The total overhead applied to Product E2 under activity-based costing is closest to:
A)$671,750
B)$417,960
C)$621,110
D)$725,520

Question

Fullard,Inc. ,manufactures and sells two products: Product E2 and Product G3.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 has an activity-based costing system with the following activity cost pools,activity measures,and expected activity:  The total overhead applied to Product E2 under activity-based costing is closest to:
A)$671,750 
B)$417,960 
C)$621,110 
D)$725,520

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_3343_4a12_908b_c79d38f206b5_TB2461_00 Computation of the overhead cost under activity-based costing.
 11eaa3fe_3343_7123_908b_9127f61a0399_TB2461_00