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

question 12

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 R09O under the activity-based costing system is closest to:

• A)$113.46
• B)$255.00
• C)$141.54
• D)$17.28

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Definitions:

Healthy Adult

An individual in a state of physical, mental, and social well-being, not merely the absence of disease or infirmity.

Shed Responsibility

The act of releasing or delegating one's duties or obligations to others.

Impasse

A situation in which progress is halted or impossible due to disagreement, deadlock, or a failure to find a satisfactory solution.

Maturation Process

The maturation process is the natural progression through which individuals grow and develop physically, emotionally, and psychologically, often following predetermined genetic timelines.