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16 2 pts Health Solutions, Inc. makes two types of health bars and is implementing an ABC system. Previously, all overhead totaling $81,000 had been
16 2 pts Health Solutions, Inc. makes two types of health bars and is implementing an ABC system. Previously, all overhead totaling $81,000 had been applied on the basis of machine hours (9,000 total for the period: 5,000 for Nutty Bars and 4,000 for Raisin Bars). The company produces 22.500 units of Nutty Bars and 42.284 units of Raisin Bars. Additional data is as follows: Cost Driver and Estimated Use of Cost Driver Use of Cost Driver Estimated Level Overhead Cost Pool of Activity Cost by Nutty Bars by Raisin Bars 100 setups $20,000 65 setups 35 setups Setup 140 orders $21,000 95 orders 45 orders 4,000 machine hours 5,000 machine 9,000 machine $18,000 hours hours What is the overhead cost per unit for Nutty Bars when all overhead is applied based on machline hours using one plantwide rate? (Hint: Start by calculating the $2.00 $3.60 $13.62 $9.00
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