TB MC QuStatic Lefave, Incorporated, manufactures and sells...
Lefave, Incorporated, manufactures and sells two products: Product Q and Product D Data concerning the expected production of each product and the expected total direct laborhours DLHs required to produce that output appear below:
Expected Production Direct LaborHours Per Unit Total Direct LaborHours
Product Q
Product D
Total direct laborhours
The company is considering adopting an activitybased costing system with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity
Product Q Product D Total
Laborrelated DLHs $
Product testing tests
Order size MHs
$
If the company allocates all of its overhead based on direct laborhours using its traditional costing method, the predetermined overhead rate would be closest to:
Multiple Choice
$ per DLH
$ per DLH
$ per DLH
$ per DLH
