Question
Jeanlouis, Inc., manufactures and sells two products: Product D0 and Product D5. The company has an activity-based costing system with the following activity cost pools,
Jeanlouis, Inc., manufactures and sells two products: Product D0 and Product D5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
EstimatedExpected Activity
Activity Cost PoolsActivity Measures
Overhead Cost
Product D0
Product D5
TotalLabor-relatedDLHs$313,7433,6003,3006,900Production ordersorders70,264300500800General factoryMHs253,5554,3004,2008,500$637,562
The total overhead applied to Product D5 under activity-based costing is closest to:
$319,252
$125,286
$304,920
$273,240
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