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Gelinas, Inc., manufactures and sells two products: Product S5 and Product L3. Expected production of Product S5 is 500 units and of Product L3 is
Gelinas, Inc., manufactures and sells two products: Product S5 and Product L3. Expected production of Product S5 is 500 units and of Product L3 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 S5 | Product L3 | Total | |
Labor-related | DLHs | $ | 286,741 | 3,500 | 5,600 | 9,100 |
Production orders | orders | 40,384 | 300 | 500 | 800 | |
Order size | MHs | 463,730 | 4,000 | 3,900 | 7,900 | |
$ | 790,855 | |||||
|
The overhead applied to each unit of Product L3 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
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