The manufacturing overhead that would be applied to a unit of product R58G under the company's traditional costing system is closest to:
A)$6.74
B)$16.10
C)$22.84
D)$2.90

Question

Quizplus · Accepted Answer

The correct answer is A because the traditional costing system applies overhead based on direct labor hours. Product R58G has 0.4 direct labor hours, and the overhead rate is $16.85 per direct labor hour. Therefore, the overhead applied to a unit of product R58G would be $16.85 x 0.4 = $6.74.

The Manufacturing Overhead That Would Be Applied to a Unit