(Appendix 2A) Look Manufacturing Corporation Has a Traditional Costing System

question 14

Multiple Choice

(Appendix 2A) Look 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, N06D and M09K, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $2,532,200 and the company's estimated total direct labor-hours for the year is 44,000.
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 N06D under the company's traditional costing system is closest to:

• A) $28.78
• B) $10.00
• C) $63.31
• D) $34.53

---

Definitions:

Investment Proposals

Detailed plans or suggestions put forward for consideration or discussion, especially one aimed at achieving returns on invested capital.

Solicited Proposals

These are proposals requested by an organization or individual, usually in response to a specific need or requirement they have published.

Sales Proposals

Detailed written offers aimed at persuading a prospective client or customer to purchase a product or service.

Hidden Internet

Parts of the internet that are not indexed by standard search engines, sometimes referred to as the deep web.