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Assume a company produces and sells only two products---14.000 units of Product A and 6,000 units of Product B. The selling prices are $65 per
Assume a company produces and sells only two products---14.000 units of Product A and 6,000 units of Product B. The selling prices are $65 per unit for Product A and $96 per unit for Product B. Product A's direct materials and direct labor costs per unit are $30 and $15, respectively. Product B's direct materials and direct labor costs per unit are $34 and $16, respectively. The company uses a plantwide overhead rate based on direct labor dollars. It is considering implementing an activity based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional Information is available for the company as a whole and for Products A and B: Estimated Overhead Cost Activity Cost Pool Machining Machine setups Product design Activity Measure Machine-hours Number of setups Number of products $ $ $ 150, eee 80,000 Expected Activity 15, eee MH 200 Setups 2 Products Product A 9, eee Activity Measure Machine-hours Number of setups Number of products Product B 6, eee 150 50 1 1 Activate Window Using the company's plantwide approach, the total overhead cost allocated to Product A is closest to (Round your intermediate calculations to 2 decimal places.); $383,300. $363,300. $333,300. O $403,300
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