d Questions 18-21 are based on the following: Fox Corp. manufactures two products, BASICM and GRANDM. Manufacturing overhead is currently being applied on the basis of direct labor hours. Owl gathers some activity information and is interested in implementing an activity- based costing system. The overhead cost pools and activity drivers are as follows: Activity Machining Warehousing Total overhead costs Units produced Direct material cost per unit Direct labor cost per unit Other product information is as follows: #batches Overhead Costs Direct labor hours Machine hours $840,000 $510,000 $1,350,000 BASICM 30,000 $80 $10 1,000 30,000 45,000 Activity Driver Machine hours #Batches GRANDM 15,000 $125 $30 1,000 45,000 60,000

Questions 18-21 are based on the following: Fox Corp. manufactures two products, BASICM and GRANDM. Manufacturing overhead is currently being applied on the basis of direct labor hours. Owl gathers some activity information and is interested in implementing an activitybased costing system. The overhead cost pools and activity drivers are as follows: Other product information is as follows: Using the ABC method, how much overhead costs would be applied to BASICM? $615,000 $641,133 (rounded) $540,000 $840,000 Question 21 2.5pts Using the ABC method, what is the cost per unit for BASICM? $108 $110,50 $111 $118 Using the traditional method, how much overhead costs would be applied to GRANDM? $540,000 $810,000 $450,000 $1,350,000 Question 19 2.5pts Using the ABC method, what is the overhead rate for Warehousing? $255 per batch $510 per batch $8.50 per batch $11.33 per batch Question 20 2.5pts Using the ABC method, how much overhead costs would be applied to BASICM? $615,000 $641,133 (rounded)