(Appendix 2A) Look Manufacturing Corporation Has a Traditional Costing System

question 18

Multiple Choice

(Appendix 2A) Look Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs) . The company has two products, N06D and M09K, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $2,532,200 and the company's estimated total direct labor-hours for the year is 44,000.
The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

-The manufacturing overhead that would be applied to a unit of product M09K under the activity-based costing system is closest to:

• A) $76.73
• B) $92.08
• C) $11.00
• D) $168.81

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Definitions:

Collective Agreement Negotiations

The process in which representatives of employers and employees negotiate over terms of employment, such as wages, hours, and working conditions, leading to a collective agreement.

Bargain

To negotiate terms, especially in the context of prices or conditions of an agreement, with the aim of reaching a mutually acceptable deal.

Face-to-face Negotiations

Direct negotiations between parties who are physically present in the same location, allowing for immediate interaction and feedback.

Industrial Relations Department

A division within a company focused on managing relationships and negotiating labor contracts with employees and unions.