Question
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
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$333.92 per unit
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$805.37 per unit
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$429.35 per unit
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$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
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$218,886.90
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$205,359.78
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$115,894.00
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$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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