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Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 1,100 units and

Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 1,100 units and of Product H9 is 1,100 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity
Product K0 Product H9 Total
Labor-related DLHs $ 551,008 8,800 4,400 13,200
Production orders orders 54,019 1,200 200 1,400
Order size MHs 836,616 3,500 2,700 6,200
$ 1,441,643

The overhead applied to each unit of Product K0 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

  • $333.92 per unit

  • $805.37 per unit

  • $429.35 per unit

  • $327.64 per unit

Merone Company allocates materials handling cost to the company's two products using the below data:

Modular Homes Prefab Barns
Total expected units produced 5,100 8,100
Total expected material moves 510 110
Expected direct labor-hours per unit 710 210

The total materials handling cost for the year is expected to be $266,100.

If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the modular homes is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

  • $218,886.90

  • $205,359.78

  • $115,894.00

  • $139,386.00

Doles Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.

Activity Cost Pools Activity Rate
Setting up batches $ 70.62 per batch
Processing customer orders $ 27.68 per customer order
Assembling products $ 12.81 per assembly hour

Data concerning two products appear below:

Product K52W Product X94T
Number of batches 68 55
Number of customer orders 48 33
Number of assembly hours 421 164

Required:

How much overhead cost would be assigned to each of the two products using the company's activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.)

Total Overhead Cost: Product K52W and Product X94T

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