(Appendix 4A)Binegar Manufacturing Corporation Has a Traditional Costing System in Which

question 1

Multiple Choice

(Appendix 4A) Binegar 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, R58G and R09O, about which it has provided the following data: The company's estimated total manufacturing overhead for the year is $1, 617, 600 and the company's estimated total direct labor-hours for the year is 24, 000. The company is considering using a form 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 R58G under the company's traditional costing system is closest to:

• A)$6.74
• B)$16.10
• C)$22.84
• D)$2.90

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Definitions:

Demand for Labor

The quantity of workers that employers are willing and able to hire at different wage levels in a given time period, reflecting the need for labor in producing goods and services.

Labor-augmenting

Refers to technological improvements or investments that increase the productivity of labor, allowing workers to produce more output per unit of labor.

Marginal Productivity

The additional output resulting from a one-unit increase in the input of a particular factor of production, while holding other inputs constant.

Labor Demand Curve

A curve representing the quantity of labor that employers wish to hire at different wage rates.