National Inc

question 45

Multiple Choice

National Inc.manufactures two models of CMD that can be used as cell phones,MPX,and digital camcorders.
National uses a volume-based costing system to apply factory overhead based on direct labor dollars.The unit prime costs of each product were as follows:
National's controller had been researching activity-based costing and decided to switch to it.A special study determined National's two products have the following budgeted activities:
Using activity-based costing,applied miscellaneous overhead for the Great P model per unit is (rounded to the nearest cent) :

• A)$4.60.
• B)$9.45.
• C)$13.44.
• D)$15.12.
• E)$42.61.

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Definitions:

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