Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 2,000 units of Basic Product and 1,300 units of Deluxe Product. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Basic Product requires 0.4 direct labor hours per unit and Deluxe Product requires 0.8 direct labor hours per unit. The total estimated overhead for next period is $99,135.

The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost poolsActivity 1, Activity 2, and General Factorywith estimated overhead costs and expected activity as follows:

	Estimated				Expected Activity
Activity Cost Pool	Overhead Costs				Basic Product		Deluxe Product		Total
Activity 1	$	30,612			1,100		700		1,800
Activity 2		17,490			1,700		450		2,150
General Factory		51,033			800		1,040		1,840
Total	$	99,135

The overhead cost per unit of Deluxe Product under the traditional costing system is closest to:

Great Falls Company makes two products, Wool Gloves and Wool Mittens. They are initially processed from the same raw material and then, after split-off, further processed separately. Additional information is as follows:

	Gloves			Mittens			Total
Final Sales Price	$	14,700		$	12,270		$	26,970
Joint Costs Prior to Split-Off Point		?			?		$	15,453
Costs Beyond Split-Off Point	$	4,900		$	4,900		$	9,800

What are the joint costs allocated to Gloves and Mittens assuming Great Falls uses the estimated net realizable value approach?

	Gloves				Mittens
A.	$	7,726			$	7,726
B.	$	8,380			$	7,073
C.	$	8,820			$	6,633
D.	$	8,980			$	6,473