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Brizendine, Inc., manufactures and sells two products: Product R0 and Product B6. The production of Product R0 is 900 units and of Product B6 is
Brizendine, Inc., manufactures and sells two products: Product R0 and Product B6. The production of Product R0 is 900 units and of Product B6 is 700 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 R0 | Product B6 | Total | |
Labor-related | DLHs | $ | 507,394 | 7,200 | 3,500 | 10,700 |
Product testing | tests | 9,464 | 300 | 500 | 800 | |
Order size | MHs | 501,205 | 3,100 | 2,800 | 5,900 | |
$ | 1,018,063 | |||||
The overhead applied to each unit of Product R0 under activity-based costing is closest to what?: (Round your intermediate calculations to 2 decimal places.)
Mutliple choice:
a. $675.91 per unit
b. $292.61 per unit
c. $761.20 per unit
d. $636.29 per unit
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