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

question 2

Multiple Choice

(Appendix 2A) Poma 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, R78S and N32Y, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $1,427,040 and the company's estimated total direct labor-hours for the year is 24,000.
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 R78S under the company's traditional costing system is closest to:

• A) $36.00
• B) $59.83
• C) $47.20
• D) $59.78

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