Mcleese,Inc

question 30

Multiple Choice

Mcleese,Inc. ,manufactures and sells two products: Product I6 and Product L1.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 $26.60 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 overhead assigned to each unit of Product L1 would be closest to:

• A)$254.85 per unit
• B)$337.30 per unit
• C)$317.90 per unit
• D)$108.90 per unit

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