National Inc

question 36

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 the firm's volume-based costing,applied factory overhead per unit for the Great P model is (rounded to the nearest cent) :

• A)$61.32.
• B)$65.43.
• C)$43.42.
• D)$45.99.
• E)$54.04.

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