Question
Olide, Inc., manufactures and sells two products: Product B9 and Product C8. The annual production and sales of Product of B9 is 300 units and
Olide, Inc., manufactures and sells two products: Product B9 and Product C8. The annual production and sales of Product of B9 is 300 units and of Product C8 is 100 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 B9 | Product C8 | Total |
| Labor-related | DLHs | $67,966 | 2,400 | 1,000 | 3,400 |
| Production orders | orders | 13,874 | 300 | 400 | 700 |
| General factory | MHs | 283,911 | 5,000 | 5,100 | 10,100 |
| $365,751 | |||||
The overhead applied to each unit of Product B9 and C8 under activity-based costing is closest to:
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Selected Chapters From Managerial Accounting Creating Value In A Dynamic Business Environment
Authors: Ronald W. Hilton
Edition
0073043346, 978-0073043340
