Question

Lefave, Inc., manufactures and sells two products: Product Q1 and Product D5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

Lefeve, he manufectures and sells two products: Product C1 and Product D5. Date conceming the expected production of each product nd the expected totel drect lebor-hourS IDLHs) required to produce thet output appeer below total txpectedHours 1,100 5.1 5,610 6,555 Labor- Labor- Unie Produot Q1 Product DS Total direct Labor-hours 450 2.194 The company is consideing adopting an actvity based costing system wilth the folowing activty cos pools, acavity measures, and expected actvity ed activity Acrivity co t Activity overhead product卫roduct Poola Heasures Cost Labor- related 01 945 6,555 909 45 350 800 205,825 3,900 3,800 ,700 DLHS153,482 5,610 5409,216 If she compamy alocates all of its overheod based on drect labor-hours using istraditional costing menod, the predetermined oveheed rate would be dosest to: Multiple Choice 562 43 per DLH $2673 per OLH $23.41 per DLH $62 39 per DLH

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Answer #1
Predetermined overhead rate = Estimated overhead cost/Estimated direct labor hours= 409216/6555= $62.43 per DLH
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