Minon,Inc ,Manufactures and Sells Two Products: Product J1 and Product

question 53

Multiple Choice

Minon,Inc. ,manufactures and sells two products: Product J1 and Product E7.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $19.90 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method,the predetermined overhead rate would be closest to:

• A)$68.56 per DLH
• B)$73.10 per DLH
• C)$83.34 per DLH
• D)$33.26 per DLH

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Definitions:

Partnership Agreement

A written agreement between business partners outlining the rules and responsibilities within the partnership.

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business.

State

A political entity characterized by a defined territory, population, and government with sovereignty over its domestic and international affairs.

Sole Proprietorships

A form of business entity owned and run by one individual where there is no distinction between the owner and the business.