Business, 24.06.2021 17:10 datboyjulio21

Feliciano 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, I63E and E76I, about which it has provided the following data: I63E E76I Direct materials per unit $ 21.70 $ 65.10 Direct labor per unit $ 19.50 $ 58.50 Direct labor-hours per unit 0.80 2.40 Annual production (units) 90,000 30,000 The company's estimated total manufacturing overhead for the year is $2,063,250 and the company's estimated total direct labor-hours for the year is 45,000.
The company is considering using a form of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:
Activities and Activity MeasuresEstimated
Overhead Cost
Assembling products (DLHs)$720,000
Preparing batches (batches) 263,250
Product support (product variations) 1,080,000
Total$2,063,250
Expected Activity
I63EE76ITotal
DLHs24,00021,00045,000
Batches1,0806751,755
Product variations2,1151,4853,600
The manufacturing overhead that would be applied to a unit of product E76I under the activity-based costing system is closest to:.

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