Latting Manufacturing Corporation Has a Traditional Costing System in Which

question 13

Multiple Choice

Latting 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, T73C and R28K, about which it has provided the following data: The company's estimated total manufacturing overhead for the year is $1,526,700 and the company's estimated total direct labor-hours for the year is 30,000.

The company is considering using a variation 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 T73C under the company's traditional costing system is closest to:

• A)$18.38
• B)$28.56
• C)$10.18
• D)$4.80

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Definitions:

Projection

A defense mechanism where an individual attributes their own unacceptable thoughts, feelings, or motives to someone else.

Rationalisation

A psychological strategy where questionable actions or emotions are rationalized in a way that appears logical, to sidestep the real reasons behind them.

Psychosexual Stages

Freud's theory of personality development, which posits that children pass through distinct stages centered on erogenous zones, with unsuccessful navigation potentially resulting in lifelong neuroses.

Sexual

Relating to or associated with sex, mating, or the distinction between biological categories frequently based on reproductive functions.