1. Olide, Inc., manufactures and sells two products: Product B9 and Product C8. The annual production and sales of Product of B9 is 300 units and of Product C8 is 100 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| |
|
Estimated |
Expected Activity |
| Activity Cost Pools |
Activity Measures |
Overhead
Cost |
Product B9 |
Product C8 |
Total |
| Labor-related |
DLHs |
$67,966 |
2,400 |
1,000 |
3,400 |
| Production orders |
orders |
13,874 |
300 |
400 |
700 |
| General factory |
MHs |
283,911 |
5,000 |
5,100 |
10,100 |
| |
|
$365,751 |
|
|
|
The overhead applied to each unit of Product B9 under activity-based costing is closest to:
2. Olide, Inc., manufactures and sells two products: Product B9 and Product C8. The annual production and sales of Product of B9 is 300 units and of Product C8 is 100 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| |
|
Estimated |
Expected Activity |
| Activity Cost Pools |
Activity Measures |
Overhead Cost |
Product B9 |
Product C8 |
Total |
| Labor-related |
DLHs |
$67,966 |
2,400 |
1,000 |
3,400 |
| Production orders |
orders |
13,874 |
300 |
400 |
700 |
| General factory |
MHs |
283,911 |
5,000 |
5,100 |
10,100 |
| |
|
$365,751 |
|
|
|
The overhead applied to each unit of Product C8 under activity-based costing is closest to: