(Appendix 2A) Coudriet 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, P93S and N40S, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $2,172,580 and the company's estimated total direct labor-hours for the year is 46,000.
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 unit product cost of product P93S under the company's traditional costing system is closest to:
Definitions:
Deadweight Loss
A reduction in economic effectiveness that happens when a good or service does not reach, or cannot reach, its equilibrium state.
Tax Per Unit
Tax per unit is a fixed amount of tax applied to a product or service, regardless of its price, which directly affects the supply curve by increasing production costs.
Tax Levied
The process of imposing a tax by a governing authority on the citizens and organizations.
Buyers And Sellers
Participants in a market where buyers exchange money for goods or services from sellers, creating economic transactions.
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