Use the Information Below to Answer the Following Question(s)

question 162

Multiple Choice

Use the information below to answer the following question(s) :
Kepple Manufacturing currently uses a traditional costing system. The company allocates overhead to its two products, Zips and Dees, using a predetermined manufacturing overhead rate based on direct labour hours. Here is data related to the company's two products:
Information about the company's estimated manufacturing overhead for the year follows:
Additional information about production needed for the activity-based costing system follows:
Expected Activity

-The amount of manufacturing overhead that would be allocated to one unit of Zips using the traditional costing system would be closest to

• A) $35.35.
• B) $23.57.
• C) $47.14.
• D) $32.86.

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Definitions:

Planning

The process of making plans for something, including setting goals and determining the steps necessary to achieve those goals.

Completing

The act of finishing or bringing something to an end.

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