Asked by
LALAINE CAPARAS
on Oct 11, 2024
Verified
Dunagin, Inc., manufactures and sells two products: Product U2 and Product H9.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: 
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 
If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:
A) $35.65 per DLH
B) $41.15 per DLH
C) $88.77 per DLH
D) $48.59 per DLH
Direct Labor-Hours
The total number of labor hours worked by employees who are directly involved in the manufacturing process.
- Compute overhead rates and utilize them to ascertain product costs in Activity-Based Costing.
- Learn the allocation of overhead costs with different activity drivers.
Verified Answer
TN
Learning Objectives
- Compute overhead rates and utilize them to ascertain product costs in Activity-Based Costing.
- Learn the allocation of overhead costs with different activity drivers.