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Debbie Corporation is currently using a single predetermined overhe direct labor hours to allocate manufacturing overhead to its two products: A and B. The company

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Debbie Corporation is currently using a single predetermined overhe direct labor hours to allocate manufacturing overhead to its two products: A and B. The company is considering the use of activity-based costing (ABC). The following information is provided about the production of two product lines: Activity Cost Allocation Base Setup $105,000 Setups Machine Maintenance 60,000 Machine hours Total manufacturing overhead costs $165,000 Quantity per Product line Direct labor hours Setups Machine hours Product A 5.000 20 960 Product B 7,000 180 3,040 Debbie plans to produce 200 units of Product A and 300 units of Product B. Manufacturing overhead cost per unit of Product B, using ABC is closest to: O $17.71 per unit $467.00 per unit O $550.00 per unit O $330.00 per unit

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