(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:

Huge Springs

Large natural outlets where groundwater flows out of the ground, often the result of an aquifer being filled to the point that the water overflows onto the land surface.

Hydrologic Cycle

The continuous movement of water on, above, and below the surface of the Earth, including processes such as evaporation, precipitation, and runoff.

Mid-Ocean Ridges

Undersea mountain ranges where new oceanic crust is formed through volcanic activity and seafloor spreading.

Hot Springs

Natural springs that discharge water heated by geothermal processes from the Earth's interior.